|Company Name||ALAM MARITIM RESOURCES BERHAD|
|Date Announced||06 Jan 2023|
|Category||General Announcement for PLC|
Adjudication Decision & Notice of Arbitration
Pursuant to paragraph 9.04(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”), the Board of Directors of Alam Maritim Resources Berhad ("ALAM” or "the Company") (“Board”) wishes to announce that its wholly-owned subsidiary, Alam Maritim (M) Sdn. Bhd. (“AMSB”) has, on 29 December 2022, received notification from its appointed solicitors that the Adjudication Decision pursuant to adjudication proceedings under the Construction Industry Payment & Adjudication Act 2012 (“CIPAA”) has been awarded in favour of AMSB against Vestigo Petroleum Sdn. Bhd. (“Vestigo”).
Vestigo has been ordered to pay AMSB the Change Orders and approved outstanding invoices totalling of USD11,941,369.28 and RM679,722.44; the costs of Adjudicator’s fee and other related fees; RM90,000.00 for the costs of preparation of submissions and documentation and legal representation inclusive of all out-of-pocket expenses and tax; and all payments shall be paid within 30 days from 27.12.2022 failing which late payment interest of 5% per annum is payable until full settlement.
This award is in relation to works done and/or services rendered by AMSB pursuant to a letter of award dated 5 March 2019 and a contract bearing Contract No. VPSB/18/DEV/0101 entered between Vestigo and AMSB dated 5 March 2019 for the Provision of Engineering, Procurement, Construction, Installation and Pre-Commissioning of Pipeline System for Tembikai Non-Associated Gas (TNAG) Development (“Project”).
As of to date, no payment is received by AMSB. Instead, AMSB received a Notice of Arbitration dated 15 December 2022 (“Notice of Arbitration”) from Vestigo. It is advised by its solicitors that AMSB has a good chance to resist the arbitration commenced by Vestigo and the Company is of the opinion that it does not expect to have any material financial impact for the financial year ending 30 June 2023. AMSB is taking advice from its solicitors and will attend to the said Notice of Arbitration appropriately.
None of the directors or major shareholders of the Company or persons connected to them has any interest, direct or indirect, in the Adjudication proceedings nor the Arbitration proceedings.
Further announcement on the material development of the above matter will be made to Bursa Malaysia Securities Berhad from time to time.
The announcement is dated 6 January 2023.