Further to the announcement by Mohammad Al-Mojil Group (MMG) on January 20, 2013 relating to the board’s approval of taking legal action for collecting company’s arrears, the Group announces that it officially filed an arbitration lawsuit against Petrofac Saudi Arabia on January 30, 2013.
The decision comes after negotiations failed to bring about a satisfactory and fair resolution that protects the company’s rights and compensate the cost of contracts signed with Petrofac.
MMG requests Petrofac to pay back SAR 177 million including financial claims and compensation for the failure to settle outstanding sums in return the works presented at Karan Project for support services and power generation at the Khursaniyah gas plant, where Petrofac is the main contractor.
This is the first such action by the company, and similar measures will follow and be announced in due course. No impact expected on company results.
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