MATERIAL LITIGATION MISC BERHAD ("MISC" or the "Company") - DEVELOPMENTS IN MATERIAL LITIGATION: LEGAL PROCEEDINGS BY GUMUSUT-KAKAP SEMI-FLOATING PRODUCTION SYSTEM (L) LIMITED ("GKL") AGAINST SABAH SHELL PETROLEUM COMPANY LIMITED ("SSPC")
| MISC BERHAD |
| Type | Announcement |
| Subject | MATERIAL LITIGATION |
| Description | MISC BERHAD ("MISC" or the "Company")
- DEVELOPMENTS IN MATERIAL LITIGATION: LEGAL PROCEEDINGS BY GUMUSUT-KAKAP SEMI-FLOATING PRODUCTION SYSTEM (L) LIMITED ("GKL") AGAINST SABAH SHELL PETROLEUM COMPANY LIMITED ("SSPC") |
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We refer to the previous announcements made by MISC on 10 April 2020, 17 July 2020 and 30 December 2022 and subsequent updates in the quarterly reports in respect of the legal proceedings arising from the Arbitral Award dated 8 April 2020 (“Arbitral Award”) pursuant to the Arbitration Proceedings commenced by MISC’s wholly-owned subsidiary, GKL, against SSPC.
As previously updated in the quarterly reports, GKL had on 19 January 2023 filed notices of appeal to the Court of Appeal against the dismissal of GKL’s originating summons to set aside parts of the Arbitral Award under section 37 of the Arbitration Act 2005 and application to set aside SSPC’s order on the recognition and enforcement of the Arbitral Award under section 39 of the Arbitration Act 2005 (“Setting Aside Applications”).
GKL’s basis for challenge in the Setting Aside Applications was based on, amongst others, the following grounds:
(a) That the Arbitral Tribunal acted in excess of its jurisdiction; (b) That there was a breach of the rules of Natural Justice in the course of the Arbitration; and (c) Those parts of the Arbitral Award breach the public policy of Malaysia.
On 5 December 2025, the Court of Appeal allowed GKL's appeals in part with costs of RM150,000 to be paid by SSPC to MISC.
The Court of Appeal's decision has reduced the value of the Arbitral Award to SSPC from USD330,169,830.68 (exclusive of costs and interest) to USD200,000,000. An interim stay on the execution of the Court of Appeal judgment was granted to SSPC, conditional upon SSPC filing a formal application for a stay of execution within 14 days.
Both parties have one month to file an application for leave to appeal to the Federal Court. GKL will further review its position upon receipt of the full written grounds of judgment.
This announcement is dated 5 December 2025 |
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Announcement Info
| Company Name | MISC BERHAD |
| Stock Name | MISC |
| Date Announced | 05 Dec 2025 |
| Category | General Announcement for PLC |
| Reference Number | GA1-05122025-00050 |