MISC revealed its subsidiary Gumusut-Kakap Semi-Floating Production System Ltd (GKL) had commenced arbitration proceedings against Sabah Shell Petroleum Corporation (SSPC) for claims over outstanding additional lease rates, payment for completed variation works and other associated costs.
The claims relate to the lease agreement MISC and Shell entered into in 2012 for the construction and lease of the Gumusut-Kakap semi-floating production system which Shell has been using at the Gumusut-Kakap field off Malaysia.
Despite
