Malaysia Marine and Heavy Engineering (MMHE) has received a notice of arbitration from the Dutch company Boskalis regarding the floatover installation of the topsides for the Bokor central processing platform offshore Malaysia.
MMHE said Boskalis was its subcontractor for the transport and install of the topsides.
It said under the terms of the subcontract, Boskalis made available a vessel for the load-out of the topside based on an agreed schedule.
In the notice of arbitration, Bosklais claimed there was a delay in the load-out exercise onto the vessel and, as a result, Boskalis had incurred demurrage and standby costs between 21 April 2020 and 20 July 2020.
Boskalis is seeking from MMHE the alleged costs of US$11,954,475 together with interest and costs.
"MMHE disputes the claims and maintains that MMHE has fully observed the provisions of the subcontract at all times. BMSB's (Boskalis') claims are not consistent with the subcontract and/or in law. Further, the events and circumstances during the claim period were fully known to BMSB (Boskalis) and there was no delay on MMHE’s part during the said period that will entitle BMSB to any compensation.
MMHE said it "will vigorously defend the claims".