POSH spat with Makamin Offshore heats up

A dispute is heating up between the Saudi offshore vessel provider Makamin Offshore, and Singapore’s shipowner POSH, following the legal proceedings initiated in Saudi Arabia by POSH in March, 2016. Makamin has rejected all the claims made by POSH, and has filed a counter lawsuit.

To remind, POSH Semco in March started a legal action against Makamin in Saudi Arabia, seeking $6.6 million Makamin allegedly owes it for vessel charters.

In its statement last month POSH, which has vessels under contract with Makamin, said the Saudi company owed the cash for, inter alia, “the charter hire of three vessels owned by the group, charges for meals and accommodation and interest charges on the amount owing in relation to the time charters of the vessels.”

The Singapore-based POSH has also started the process of serving court papers on Makamin in relation to an application for a court order in the Kingdom of Saudi Arabia to compel Makamin to carry out their agreement to novate their sub-charters for two of the vessels to the Group’s nominee.

Furthermore, POSH has has served on Makamin a notice to withdraw one of the vessels and will be suspending performance of that Charter Party pending withdrawal of the vessel.


Lawsuits without basis

In a separate statement, Makamin has rejected POSH Semco’s claims, saying it would  ‘vigorously contest’ the legal proceedings brought by the Singapore-based company.

“The Company takes the position that the law suits are without basis and POSH Semco is not entitled to seek from Makamin Offshore the sum of SAR 24.4 million, nor does POSH Semco have the right to enforce an expired agreement to novate certain sub-charters to a nominee. Makamin Offshore is vigorously contesting legal proceedings brought by POSH Semco and will take appropriate measures to defend its interests,” Makamin Offshore said.

As a response, Makamin Offshore said it launched a counter suit in the Saudi courts, seeking relief for “loss and damage caused by PACC Offshore Services Holdings Ltd and certain of its subsidiaries arising from various breaches of contractual obligations as well as other obligations under Saudi laws.”

Furthermore, Makamin claims it has filed a complaint against POSH Semco in Saudi Arabia for suspected falsification/forgery by POSH Semco of a time charter party with Makamin Offshore and “the said complaint has since been passed to the relevant Saudi governmental authorities for investigation.”

The Saudi vessel supplier also added that it would be prepared to assist Singapore authorities “if they decide to investigate that matter.”


 

No formal charge

 

Taking note of Makamin Offshore’s statement, POSH on Wednesday said that it has not received „any formal charges on any such complaint,“ from Makamin Offshore.

POSH said it believed Makamin’s statements were a reaction to the legal actions that the company started in March against Makamin, and that „Makamin does not have any basis for any such complaint against PSPL (POSH Semco Pte. Ltd.).

“In any event, the Company intends to vigorously contest and defend against any charge or allegation made against PSPL by Makamin and will take all steps necessary to protect its reputation, its interests and the interests of its shareholders,” POSH said on Wednesday.

Offshore Energy Today Staff

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