This article first appeared in The Edge Financial Daily, on April 22, 2016.
KUALA LUMPUR: Bumi Armada Bhd is claiming US$283.51 million (RM1.1 billion) from Australia-based Woodside Energy Julimar Pty Ltd for the termination of its RM1.46 billion charter contract for the Armada Claire floating production storage and offloading (FPSO) unit.
The sum comprises US$275.81 million as termination payment, and US$7.7 million for work done and materials supplied pursuant to the contract, according to Bumi Armada’s filing yesterday.
The claims were made in a statement of claim filed and served in the Supreme Court of Western Australia by Bumi Armada’s wholly-owned unit Armada Balnaves Pte Ltd (ABPL) against Woodside yesterday.
This follows the writ of summons filed by ABPL against Woodside on March 14 after the purported termination of the FPSO contract by Woodside via the issuance of a notice on March 4.
The writ then had sought for an unquantified amount of damages from the repudiation of the contract.
“Under the statement of claim, ABPL has made a claim for damages in general for such repudiation, and the amount of such damages has now been quantified by ABPL to include the sum of US$275,813,698.63 (being the amount of the termination payment to which ABPL is entitled had the contract been terminated without breach),” said Bumi Armada.
It is also seeking any additional damages for loss of bargain caused to ABPL as a consequence of Woodside’s repudiation of the contract. Further, an additional sum of US$7.7 million is sought for work done and materials supplied pursuant to the contract, it said.
Bumi Armada said it was of the view that there are reasonable grounds to expect a favourable outcome with respect to ABPL’s primary claim against Woodside on the repudiation of the contract.
Bumi Armada’s shares closed 2 sen or 2.58% higher at 79.5 sen yesterday, valuing it at RM4.66 billion. The termination of the FPSO contract had previously sent its shares tumbling from RM1 on March 4, to as low as 71 sen on April 18.