KUALA LUMPUR (Oct 26): KKB Engineering Bhd (KL:KKB) said its 60.81%-owned subsidiary OceanMight Sdn Bhd has won a RM49.78 million arbitration award in a dispute with Shapadu Energy Services Sdn Bhd over hook-up and commissioning projects in Sarawak.
An arbitral tribunal ordered Shapadu Energy — a wholly-owned unit of Shapadu Corp Sdn Bhd — to pay OceanMight a combined RM49.78 million under two final arbitral awards dated Oct 12, together with interest of 5% per annum until full payment is made, according to KKB Engineering's bourse filing on Monday.
KKB Engineering said it was informed of the decisions by its solicitors on Oct 21.
“OceanMight will take all necessary legal actions including recognition and enforcement of the final arbitral awards through the High Court,” the company said.
OceanMight had appointed Shapadu Energy as a subcontractor to undertake hook-up and commissioning projects in Sarawak through letters of award dated Dec 23, 2019, and Jan 14, 2020.
However, in April 2023, OceanMight alleged that Shapadu Energy had breached its contractual obligations, forcing OceanMight to take over the subcontracted works.
OceanMight initiated arbitration proceedings in September 2023 to recover costs incurred in completing the projects, loss of profits and other expenses.
Shares in KKB Engineering slipped two sen or 1.63% to close at RM1.21 on Monday, giving the group a market capitalisation of RM349.36 million.