KUALA LUMPUR (March 3): Hibiscus Petroleum Bhd said a Sarawak-based oil and gas services provider has initiated arbitration proceedings against its indirect wholly owned subsidiary Hibiscus Oil & Gas Malaysia Ltd over a RM36.57 million claim.

The group said Oceancare Corporation Sdn Bhd (OCSB) has issued the arbitration notice over a dispute arising from a contract with Hibiscus Oil & Gas, as operator of relevant production sharing contracts.

OCSB (formerly known as Repsol Oil & Gas Malaysia Ltd) is alleging, among other things, variation to the original scope of work, which Hibiscus Oil & Gas denies, said Hibiscus Petroleum in a Bursa Malaysia filing.

"It is Hibiscus Oil & Gas and its external legal counsels’ position that there are good defences to OCSB’s claims.  

"Hibiscus Oil & Gas, nevertheless, has engaged in protracted without prejudice discussions with OCSB since 2021 to resolve the outstanding issues, which have not been successful to date," said Hibiscus Petroleum.  

It added that Hibiscus Oil & Gas is again actively engaging with external legal advisers on the appropriate response to the arbitration notice and future steps to defend OCSB's claims.

Hibiscus Petroleum’s share price finished unchanged at RM1.09 on Friday, bringing the group a market capitalisation of RM2.19 billion.