Compensation claims rise in POSH, Makamin spat

Singapore’s offshore vessel owner POSH has yet to resolve its dispute with Makamin Offshore in Saudi Arabia.

POSH last year started legal action against Makamin, seeking $6.6 million owed for vessel charters. This claim was dismissed by Makamin, who then filed a counter lawsuit. More here:

In a new development, POSH on Monday said it increased the amount of its claim against Makamin from $6.6 million to approximately $11.3 million. POSH said the new claim was due to „additional amounts of charter hire for three vessels owing by Makamin“ to POSH.

Worth noting, POSH has also been informed by its Saudi Arabia counsel that Makamin has made certain counterclaims against its Saudi subsidiary PSPL.

Namely, according to POSH, Makamin is seeking approximately $20 million for compensation for the alleged loss of the three contracts with Aramco; $30 million for compensation for the alleged loss of future work with Aramco; $10.2 million for payment of sums which PSPL has allegedly offered to pay Makamin against the three contracts, and $2,000 per day for payment of sums which PSPL is allegedly liable to pay to Makamin under a novation agreement.

The Singapore-based vessel owner has also said that Makamin is in addition seeking an unspecified amount of compensation for any interruption of oil production as a result of withdrawing the vessels; and  an unspecified amount of compensation for the alleged cost incurred for operating the vessels.

“The Group is taking advice from its Saudi Arabia legal counsel and notes that certain counterclaims made by Makamin are duplicative in nature to claims made by Makamin against the Group that have already been rejected by the Saudi Arabia court

“The Group intends to vigorously contest and defend itself against Makamin’s allegations and counterclaims and will take all steps necessary to protect its reputation and interests, as well as the interests of its shareholders,” POSH said.

Offshore Energy Today Staff