Perdana Petroleum gets arbitration notice from Nam Cheong

PETALING JAYA: Perdana Petroleum Bhd’s (PPB) wholly-owned subsidiary Petra Offshore Limited (POL) has received a notice of arbitration from the solicitors of Nam Cheong International Ltd (NCIL) in respect of PPB's cancellation of the purchase of two vessels for US$84 million (RM376 million).
In a stock exchange filing, PPB said NCIL is seeking, among other things, the relief that POL’s purported termination of the MOA on Dec 1, 2016 is wrongful and unwarranted and the forfeiture of the 20% deposit amounting to US$8.4 million (RM37 million) together with damages arising from failure and/or refusal and/or neglect of POL to take delivery of the vessel.
NCIL has filed the notice of arbitration with the Kuala Lumpur Regional Centre for Arbitrations as claimant against POL as the respondent.
"POL shall take all necessary steps to defend or safeguard POL’s interests in the arbitration proceedings," PPB said.
Earlier this month, POL had cancelled its acquisition of accommodation workbarge identified as Vessel Hull No. SK 317 from NCIL as NCIL had not fulfilled the condition of delivery of the vessel in accordance with the terms and conditions of the MOA. Accordingly, POL had sought the immediate return of the deposit paid of US$8.4 million.