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

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

Court held GKL failed to prove breach of natural justice, excess of jurisdiction or conflict with Malaysian public policy. Tribunal acted within its procedural authority; factual findings and quantification (including sampling/extrapolation, common costs, accommodation vessel, set-off and limitation clause construction) were matters for the Tribunal and are not reviewable. s.30(4A) AA was not applicable to the arbitration. Applications were dismissed and costs awarded to SSPC.

Citation
WA-24C(ARB)-10-05/2020 (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)-10-05/2020 (Mahkamah Tinggi)
Procedural Posture
Originating Summonss Enforcement and Setting Aside of Arbitration Award Under Arbitration Act 2005 / Grounds of Decision (judgment on Applications to Set Aside Award and Registration)
Outcome
Both applications to set aside the arbitration award and challenge its registration dismissed
Legal Topics
Setting Aside Arbitral Award, Enforcement of Award, Breach of Natural Justice, Excess of Jurisdiction, Quantification of Damages, Sampling and Extrapolation Methodology, Limitation of Liability, Set Off, Double Recovery
Source Language
Malay/English
Arbitration Contract Law Civil Procedure Public Policy Evidence Setting Aside Arbitral Award Enforcement of Award Breach of Natural Justice +6 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 Summonss Enforcement and Setting Aside of Arbitration Award Under Arbitration Act 2005 / Grounds of Decision (judgment on Applications to Set Aside Award and Registration)

Legal Issues

  1. 1 Whether Award should be set aside under ss.37 and 39 AA for breach of public policy
  2. 2 Whether Tribunal breached rules of natural justice (duress/undue influence) in imposing sampling/extrapolation
  3. 3 Whether Tribunal acted in excess of jurisdiction including in awarding common costs, accommodation vessel, and allowing set-off

Ratio Decidendi

Court held GKL failed to prove breach of natural justice, excess of jurisdiction or conflict with Malaysian public policy. Tribunal acted within its procedural authority; factual findings and quantification (including sampling/extrapolation, common costs, accommodation vessel, set-off and limitation clause construction) were matters for the Tribunal and are not reviewable. s.30(4A) AA was not applicable to the arbitration. Applications were dismissed and costs awarded to SSPC.

Court Disposition

Both applications to set aside the arbitration award and challenge its registration dismissed

Orders

  • Both Applications dismissed
  • Costs to SSPC of RM175,000.00 for each Application subject to the usual allocator