KUALA LUMPUR (March 19): Boustead Holdings Bhd, which served a notice of arbitration to Petronas Carigali Sdn Bhd in 2016 for an alleged breach of contract over the early termination of a helicopter charter deal, has agreed to settle its dispute with the latter.

It also agreed to do the same for Petronas Carigali's joint operating partners (JOPs) ExxonMobil Exploration and Production Malaysia Inc, EnQuest Petroleum Production Malaysia Ltd, and Sapura Exploration and Production (PM) Inc.

In a Bursa Malaysia filing today, it said its 51%-owned unit MHS Aviation Bhd has "mutually agreed on separate settlements" with the four parties above, and that MHS had inked separate confidential agreements or undertakings with them.

"In view of the above and upon full payment of the settlement sum, MHS will withdraw the arbitration proceeding against Petronas Carigali," said Boustead in a filing today.

While Boustead did not disclose the settlement amount, group managing director Tan Sri Lodin Wok Kamaruddin said the sum is "satisfactory" and "fair".

It earlier sought RM42.7 million worth of damages from Petronas Carigali alone, based on the notice of arbitration it served on Sept 1, 2016.

"With these negotiations now satisfactorily resolved, MHS is keen to move forward with its business operations," said Lodin.

"Our focus will now turn towards leveraging new opportunities, both within and beyond the oil and gas sector. MHS remains one of our nation's helicopter charter services providers with an excellent track record in safety standards, and we are confident that this places us in a strong position for new growth," he added.

Boustead allocated five helicopters for the contract with Petronas Carigali — Provision of Rotary Wing Aircraft, Equipment and Services (For Heavy Type Aircraft- EC225) — dated June 29, 2011.

However, Petronas Carigali suspended the use of all choppers by Boustead following two forced landing incidents in the North Sea in 2012 involving flyers of the same model, but which Boustead said were not connected to the parties involved in the contract.

Petronas Carigali's JOPs then followed suit and prematurely terminated the contract with MHS. They issued the notices to Boustead in June 2017, nine months after Petronas Carigali's notice of termination to Boustead.

Boustead shares have slumped from RM2.92 in February to trade at its six-month low of RM2.58 last Thursday. The counter settled at the same level after giving up the 1 sen gain it made last Friday, for a market capitalisation of RM5.23 billion.