KUALA LUMPUR (Aug 13): Bumi Armada Bhd (Bumi Armada)’s wholly-owned subsidiary Bumi Armada Caspian LLC (BAC) has settled its dispute with SEA Srl over a service contract, for €3.2 million or approximately RM14 million.

In its filing with Bursa Malaysia today, Bumi Armada said SEA had originally claimed for approximately €28.5 million or about RM127 million in a notice of arbitration against BAC under the service contract.

The service contract, signed between BAC and SEA on Sept 28, 2012, was for post-trenching and backfilling services for the “Filanosky Field Development Project in the Russian sector of the Caspian Sea”.  

In a Bursa Malaysia announcement today, the offshore oilfield services provider said the settlement sum paid is a “full and final settlement against all claims by SEA under the service contract”.

As such, it said all arbitration proceedings will also be discontinued.

“The Settlement is not expected to have a material financial effect on the Bumi Armada Berhad Group,” it added.

Bumi Armada’s (Fundamental 1.05; Valuation: 1.4) shares closed at 97 sen today, down by 0.51% or half sen, for a market capitalisation of RM5.7 billion. In the past 12 months, the stock has slumped over 50% from RM2.01 previously.