Boustead demands RM42.76m from Petronas Carigali for breach of contract

PETALING JAYA: Boustead Holdings Berhad's 51%-owned MHS Aviation Bhd is demanding RM42.76 million in damages from Petronas Carigali Sdn Bhd (PCSB) for an alleged breach of a services contract.
According to the contract dated June 29, 2011, MHS was to provide PCSB with five EC225 helicopters for use in PCSB's oil and gas exploration and production operations.
"The use of all five helicopters was, however, suspended by PCSB unilaterally following two forced landings in the North Sea in May and October 2012 involving EC225 helicopters that were unconnected to the parties in the present case," Boustead said.
MHS views this suspension of service as a breach of contract by PCSB and is claiming in the arbitration, for damages of RM42.76 million, among others.
The group said the arbitration is part of the company's on-going recovery actions to protect and preserve MHS' rights and monetary claims for various works and services provided.
"In consultation with the company's solicitors, the board is of the view that MHS has good claims in this matter," it noted.
However, Boustead said the arbitration is expected to materially affect the operational and financial position of MHS, but not the Boustead group for the financial year ending December 31, 2016.