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    POSH/Makamin dispute escalates

    Company News // May 16, 2017

    Referring to earlier announcements, dated 21 March 2016, 6 April 2016, 13 December 2016, 7 February 2017 and 21 February 2017 in relation to legal action by POSH Semco Pte Ltd against Makamin Offshore Saudi Ltd in the Kingdom of Saudi Arabia to recover certain sums due and owing by Makamin to PSPL, as well as Makamin’s
    claims in Saudi Arabia legal proceedings against PSPL, Singapore-based POSH says there have been a number of developments in the dispute.

    POSH said that on 19 February 2017, PSPL increased the amount of its claim against Makamin from US$6.6 million to approximately US$11.3 million, arising principally from additional amounts of charter hire for three vessels owing by Makamin to PSPL.

    The group has also been informed by its Saudi Arabia counsel that Makamin has made certain counterclaims against PSPL. After a hearing in court in Saudi Arabia on 14 May 2017 POSH said these include: approximately US$20 million for compensation for the alleged loss of the three contracts with Aramco; US$30 million for compensation for the alleged loss of future work with Aramco; US$10.2 million for payment of sums which PSPL has allegedly offered to pay Makamin against the three contracts; US$2,000 per day for payment of sums which PSPL is allegedly liable to pay to Makamin under a novation agreement; an unspecified amount of compensation for any interruption of oil production as a result of withdrawing the vessels; and an unspecified amount of compensation for the alleged cost incurred for operating the vessels.

    POSH said the group is taking advice from its Saudi Arabia legal counsel and notes that certain counterclaims made by Makamin are duplicative in nature to claims made by Makamin against the group that have already been rejected by the Saudi Arabia court, as previously announced by the company on 21 February 2017.

    POSH said the group intends to vigorously contest and defend itself against Makamin's allegations.

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