Perdana, Nam Cheong settle vessel dispute

Courtesy of Petra Energy Berhad

Offshore vessel builder Nam Cheong and Malaysia’s Perdana Petroleum have reached a settlement in a dispute arising from the termination of an agreement related to an acquisition of a workbarge.

Namely, Perdana Petroleum’s subsidiary, Petra Offshore, in December 2016 cancelled its deal with Nam Cheong for the acquisition of the 500-men accommodation workbarge, identified as Vessel Hull No. SK 317, due to unfulfilled condition for the delivery of the vessel. Petra also sought the immediate return of the deposit paid of $8.4 million.

As a response, Nam Cheong terminated the agreement and forfeited the deposit after which Petra issued a letter of demand for the return of the deposit.

Later that month, Nam Cheong sent a notice of arbitration to Petra claiming that its termination was wrongful and unwarranted. Nam Cheong also sought the forfeiture of the 20% deposit amounting to $8.4 million together with damages arising from failure and/or refusal and/or neglect of Petra to take delivery of the vessel.

On August 29, 2018, Perdana informed that Nam Cheong and Petra Offshore had reached an amicable settlement regarding each other’s claims and counterclaims arising from the termination of the agreement for, Vessel Hull No. SK317.

As a result of the settlement, Petra on August 28 received from the tribunal an order of termination of the arbitration at the Kuala Lumpur Regional Centre for Arbitration.

No further details have been revealed about the nature of the settlement.

Offshore Energy Today Staff

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