Malaysia extends the MH370 search agreement with Ocean Infinity for 12 months under the no find, no fee principle.
PUTRAJAYA: The Cabinet has agreed to extend the agreement between the Government of Malaysia and Ocean Infinity (United Kingdom) to continue the underwater search efforts for the MH370 aircraft in the southern Indian Ocean, effective for 12 months, from July 1 this year to June 30, 2027.
Transport Minister Anthony Loke Siew Fook said in a statement today that the decision was reached in the Cabinet Meeting last Friday.
“This decision is a manifestation of the government’s unwavering and continuous commitment to providing the long-awaited closure for the families of the passengers of flight MH370,” he said.
He also said the extension of the agreement maintains all the main terms and conditions in the existing agreement, including the application of the “no find, no fee” principle, where the Government of Malaysia does not need to make any payment to the involved company if no aircraft wreckage is found.
“However, a payment fee of USD70 million will be paid to Ocean Infinity if the wreckage of flight MH370 is successfully found,” he said.
Loke said the approval of the extension period aims to allow the remaining search area of 7,428.54 square kilometres to be fully completed by the company.
He said that the move also takes into account the new commercial contract commitments received by Ocean Infinity, which require the reassignment of existing key operational assets to other locations temporarily.
According to him, the assignment and rescheduling of the asset can only be done starting from this November until April 2027, which is during the season of calm sea conditions to ensure the safety and effectiveness of the search.
On March 8, 2014, Malaysia Airlines flight MH370, carrying 227 passengers and 12 crew members, disappeared while en route from Kuala Lumpur to Beijing, China.
Flight MH370 was scheduled to land at Beijing Capital International Airport at 6/30 am local time, but disappeared from the radar and never reached its destination.
The search for MH370 was one of the most expensive operations in the history of world aviation, involving costs of USD200 million (RM837.47 million at the time) and the participation of 82 aircraft and 84 ships from 26 countries.
