Keppel Offshore & Marine subsidiaries receive arbitration request

The counterparty has withheld about US$11.3m and claimed payment of US$31.2m from the subsidiaries.

Keppel Corporation Limited said two of Keppel Offshore & Marine Limited’s wholly-owned subsidiaries received a request of arbitration from a counterparty to two contracts over price reduction claims.

Keppel said the claimant was a counterparty to two engineering, procurement, and construction contracts relating to Floating Production Storage and Offloading Units (EPC Contracts).

“The Claimant has withheld a total of approximately US$11.3 million due to the Respondents under the EPC Contracts and has claimed a further payment from the Respondents of approximately US$31.2 million, on the basis that the Claimant is allegedly entitled to a price reduction under the EPC Contracts,” it said in a release on Wednesday.

The two subsidiaries of Keppel Offshore & Marine, in consultation with legal advisors, deny the counter party’s “alleged right to such price reduction” and “vehemently challenge” its right to withhold payments due to them and its “supposed right to claim such price reductions, Keppel said.

“The Respondents intend to vigorously defend the Claim and in addition, seek remedies, including counterclaims for the sums unduly withheld by the Claimant, against the Claimant to the fullest extent under the EPC Contracts and at law,” Keppel said.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Around 56% of Singaporeans overspend their money during the season.
In 2021, GDP growth hit 7.1%.
The spectrum boost will deliver significant 5G coverage Australia-wide.
Over 270 entries were received from more than 25 countries.
Micro-businesses cited lack of funds as a barrier to technology adoption.
Winners will be awarded from the first to the second week of December.
Singtel had the most growth for the day.
Its performance improved in two categories.
The expected increase will be driven by three factors.
The two also discussed post-pandemic recovery.
It also recorded a strong performance for H1 2021, despite a net loss of $150.6m.
Jigger & Pony found itself retaining its ninth ranking.
The moderate increase was driven by expansions in five out of six indicators.