1. INTRODUCTION

Pursuant to paragraphs 9.03 and 9.04 (g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Company wishes to announce that Enra SPM Labuan Limited (“ESPML”), a subsidiary of the Company, had on 11 January 2021 received a Notice of Arbitration dated 4 January 2021 to commence arbitration proceedings by Controval USA LLC (“Controval”).

2. PARTIES

The claimant in the arbitration proceedings is Controval (“Claimant”) and the Respondents are SPM Terminals Pty Ltd (“1st Respondent”) and ESPML (“2nd Respondent”).

3. DETAILS OF THE DISPUTE AND CLAIM

The alleged dispute arises out of a Purchase Order purportedly entered into between Controval and Respondents (defined in the Notice of Arbitration as being the 1st Respondent and 2nd Respondent) for inter alia, the engineering, procurement and fabrication of a Leased Automated Custody Transfer with 8” Coriolis Flow Meters unit (“LACT”) to be installed in a condensate storing, offloading facilities constructed by the 2nd Respondent on the vessel known as “Ratu ENRA” (“Vessel”).

The Claimant allegedly claimed that the Respondents had failed to pay the Claimant for services performed under the Contract (as defined in the said Notice of Arbitration and which includes the said Purchase Order). The Claimant is claiming from the Respondents a sum of USD351,832.42 for unpaid invoices under the Contract, interest on the amount awarded from 7 July 2020 until settlement of the award, all arbitration costs including the Claimant’s representative’s costs and expenses and such other amounts deemed appropriate by the Arbitral Tribunal.

The Claimant has referred the matter for arbitration in Singapore in accordance with the rules of the Singapore International Arbitration Centre.

4. CURRENT STATUS

ESPML is of the view that the Notice for Arbitration against it as 2nd Respondent is baseless and is seeking legal advice on the matter. The 2nd Respondent intends to vigorously defend its position in this matter.

At this preliminary stage, the Company is unable to determine reliably the potential financial impact on the Group’s results for the financial year ending 31 March 2021.

None of the directors or major shareholders of the Company or persons connected to them has any interest, direct or indirect, in the arbitration proceedings.

Further announcements on any material developments arising in respect of this matter will be made in due course.

This announcement is dated 12 January 2021.