KUALA LUMPUR (Oct 21): Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) said it will contest a RM57.3 million arbitration claim brought by its subcontractor over works for the Bokor Phase 3 Redevelopment Project in Sarawak.

In a bourse filing on Wednesday, MHB said the Asian International Arbitration Centre (AIAC) has notified the group's solicitors that the arbitration had commenced on Oct 9.

The group said it disputes Haumea Offshore Sdn Bhd’s claims and will vigorously defend the arbitration.

It added that it has lodged counterclaims against Haumea with the AIAC over the subcontractor's alleged non-performance under the subcontract, including costs incurred to complete the works, back charges and liquidated damages.

The Bokor Phase 3 Redevelopment Project is an offshore oilfield project in Baram operated by PETRONAS Carigali Sdn Bhd. In 2017, MHB was awarded a RM1 billion contract to develop the central processing platform for the project from PETRONAS Carigali.

MHB first received a notice of arbitration from Haumea’s solicitors in April 2025, concerning a subcontract for hook-up and commissioning works, including marine vessels, under the project.

At the time, Haumea had not registered the notice with the AIAC, and arbitration proceedings had not commenced.

On Wednesday, MHB said it would discontinue two appeals against earlier High Court decisions in Johor Bahru. The appeals concerned the court’s decision to set aside an ex parte injunction obtained by MHB and its dismissal of MHB’s application for a declaration that Haumea’s notice of arbitration was premature and invalid because contractual preconditions had not been met.

Following the commencement of arbitration, the issues raised in the appeals will now be determined by the arbitral tribunal, MHB said.

Shares of MHB closed unchanged at 34 sen on Wednesday, valuing the group at RM536.23 million.