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FINANCIAL NEWS
Malay Sime, Maersk Oil Qatar sign settlement
24 Mar 2011
(MENAFN) Malaysian conglomerate Sime Darby Bhd reported signing a settlement deal between its engineering unit and Qatar-based Maersk Oil, under which it all outstanding works Sime Darby committed to in a 2007 contract would be scrapped, reported Reuters.
Sime Darby stated that it paid USD41.9 million to Maersk Oil Qatar under the settlement for work in a project called Block 5 Development Plan. In addition, the Malay company would write back around USD33 million to its profit and loss account as a result of the settlement agreement.
It is worth noting that Sime Darby had made total provisions of USD692 million for its energy and utilities division. The company had marked the Block 5 Development project as a contributor to the company’s first-ever quarterly loss.
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