KUALA LUMPUR (April 21): Bumi Armada Bhd is claiming US$275.8 million from Australia-based Woodside Energy Julimar Pty Ltd as payment for the termination of a charter contract for the Armada Claire floating production storage and offloading (FPSO) unit.
In a bourse filing, Bumi Armada said its wholly-owned unit Armada Balnaves Pte Ltd (ABPL) is also seeking US$7.7 million for work done and materials supplied pursuant to the FPSO contract.
The claims were made in a statement of claim filed and served in the Supreme Court of Western Australia against Woodside yesterday.
This follows the writ of summons filed by ABPL against Woodside on March 14, after the purported termination of the FPSO contract by the latter through the issuance of a notice on March 4.
The writ then had sought for an unquantified amount of damages from the repudation of the contract, but did not include a quantified sum for damages from the purported termination.
“Under the statement of claim, ABPL has made a claim for damages in general for such repudiation, and the amount of such damages has now been quantified by ABPL to include the sum of US$275,813,698.63 (being the amount of the termination payment to which ABPL is entitled [to], had the contract been terminated without breach)," said Bumi Armada.
It is also seeking any additional damages for loss of bargain caused to ABPL as a consequence of Woodside's repudiation of the contract. Furthermore, an additional sum of US$7.7 million was sought for work done and materials supplied pursuant to the contract, it said.
Bumi Armada said it was of the view that there are reasonable grounds to expect a favourable outcome in respect of ABPL’s primary claim against Woodside on the repudiation of the contract.
“Notwithstanding the foregoing, the award of damages in the event of a favourable outcome is subject to final determination by the court,” it said.
Bumi Armada added that it will continue to provide updates from time to time on any further material development on this matter.
At 3.22pm, Bumi Armada went up three sen or 3.87% to 80.5 sen with 84.5 million shares done, valuing it at RM4.7 billion.
ARMADA (5210) - Bumi Armada seeks US$276m from Woodside over aborted FPSO deal
http://www.theedgemarkets.com/my/article/bumi-armada-seeks-us276m-woodside-over-aborted-fpso-deal
