KNM rises 5% on starting arbitration against Lukoil for US$96m

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KUALA LUMPUR (March 12): KNM Group Bhd shares rose 5% this morning after it launched arbritration proceedings against Lukoil Uzbekistan Operating Company LLC for over US$96 million in unpaid works it carried out as a contractor in gas-condensate fields in Uzbekistan since Dec 3,2010.

At 9.30am, KNM rose 0.5 sen to 10,5 sen with 410,000 shares done.

Its wholly-owned unit, KNM Process Systems Sdn Bhd, submitted the request for arbitration against Lukoil with the Institute of the Stockholm Chamber of Commerce in Sweden today.

The group is seeking claims and damages in relation to unpaid invoices for work done, costs arising from the breach of contract, costs from design changes, additional works, prolongation of the contract and financial losses