KUALA LUMPUR (Nov 12): An arbitral tribune has ordered EA Technique (M) Bhd  (EATech) to pay Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) a sum of US$29.52 million (RM121.93 million), after hearing a dispute between the two companies over a contract. 

In a filing with Bursa Malaysia, MHB said EATech has also been ordered to pay MHB costs of RM4.69 million and interest at 5% per annum from date of award to the date of full payment. 
 
MHB, on the other hand, is not liable to pay any sum to EATech. 
 
MHB said its wholly-owned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) had in 2018 received a notice of arbitration from EA Tech for a number of claims, totaling US$21.74 million.   

The claims were in relation to the contract for the Provision of Demolition, Refurbishment and Conversion of Donor Vessel into a Floating, Storage and Offloading Facility for Full Development Project, North Malay Basin. 

EATech had appointed MMHE as the main contractor for the contract in 2015, MHB said, adding that during the period of the contract, MMHE issued additional work orders (AWOs) to EATech, claiming payments for the work done.  

Disputes and differences had arisen between the parties in respect of the sum arrived under the Invoices and the AWOs, the group said. 

It added that in 2018, EATech and MMHE entered into an agreement via a letter of undertaking, in their effort to settle the sums due under the invoices and the AWOs.  

The parties were however unable to reach an amicable settlement, paving the way for both parties to proceed with legal proceedings. 

Shares of MHB closed one sen or 2.9% higher at 35.5 sen today, giving the group a market capitalisation of RM568 million.  

EATech meanwhile closed down half a sen or 1.59% at 31 sen, bringing a market capitalisation of RM164.46 million.