GUMUSUT-KAKAP SEMI-FLOATING PRODUCTION SYSTEM (LABUAN) LIMITED SABAH SHELL PETROLEUM COMPANY LIMITED

GUMUSUT-KAKAP SEMI-FLOATING PRODUCTION SYSTEM (LABUAN) LIMITED SABAH SHELL PETROLEUM COMPANY LIMITED

GKL failed to prove breach of natural justice, excess of jurisdiction or conflict with Malaysian public policy. The Tribunal acted within its procedural discretion, parties had opportunities to present evidence and accepted or could have accepted alternatives (including tribunal expert). Findings of fact and contract construction by the Tribunal are final and not reviewable; s.30(4A) inapplicable to these proceedings; alleged double recovery and misapplication of limitation clause were addressed by the Tribunal. Consequently both the setting-aside and challenge to registration/enforcement applications are dismissed.

Citation
WA-24C(ARB)-18-03/2021 (Mahkamah Tinggi)
Parties
Plaintiff (enforcement Application); Defendant (setting Aside Application): Sabah Shell Petroleum Company Limited; Defendant (enforcement Application); Plaintiff (setting Aside Application): Gumusut-Kakap Semi-Floating Production System (Labuan) Limited
Court
ARB
Jurisdiction
Malaysia
Judgment Date
29 December 2022
Case Number
WA-24C(ARB)-18-03/2021 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (arbitration) Enforcement and Setting Aside Applications / Hearing of Concurrent Enforcement and Setting Aside Applications Concluded; Judgment Delivered
Outcome
Both applications dismissed
Legal Topics
Setting Aside Arbitral Award, Enforcement of Award, Natural Justice, Excess of Jurisdiction, Sampling and Extrapolation in Quantum, Limitation of Liability, Set Off, Damages Assessment, Double Recovery
Source Language
Malay/English
Arbitration Contract Law Civil Procedure Public Policy Setting Aside Arbitral Award Enforcement of Award Natural Justice Excess of Jurisdiction +5 more

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Parties

Sabah Shell Petroleum Company Limited

Plaintiff (enforcement Application); Defendant (setting Aside Application)

Gumusut-Kakap Semi-Floating Production System (Labuan) Limited

Defendant (enforcement Application); Plaintiff (setting Aside Application)

Procedural Posture

Originating Summons (arbitration) Enforcement and Setting Aside Applications / Hearing of Concurrent Enforcement and Setting Aside Applications Concluded; Judgment Delivered

Legal Issues

  1. 1 Whether tribunal denied natural justice by coercing sampling/extrapolation and experts
  2. 2 Whether tribunal exceeded jurisdiction by awarding common costs, accommodation vessel costs, and broad set-off
  3. 3 Whether tribunal breached s.30(5) AA (failed to decide according to contract) or acted under s.30(4A) (equity and conscience)

Ratio Decidendi

GKL failed to prove breach of natural justice, excess of jurisdiction or conflict with Malaysian public policy. The Tribunal acted within its procedural discretion, parties had opportunities to present evidence and accepted or could have accepted alternatives (including tribunal expert). Findings of fact and contract construction by the Tribunal are final and not reviewable; s.30(4A) inapplicable to these proceedings; alleged double recovery and misapplication of limitation clause were addressed by the Tribunal. Consequently both the setting-aside and challenge to registration/enforcement applications are dismissed.

Court Disposition

Both applications dismissed

Orders

  • Both applications dismissed with costs of RM175000.00 for each application subject to the usual allocator
  • Judgment dated 29 December 2022 delivered by Lim Chong Fong J, Construction Court 1