Akastor

Legal Proceedings Report • Apr 18, 2024

Akastor ASA: Arbitration award received on the DRU contracts

Akastor ASA: Arbitration award received on the DRU contracts

MHWirth AS ("MHW") has received an arbitration award issued by a tribunal under

the rules of the Singapore International Arbitration Centre (SIAC) in a dispute

with Jurong Shipyard Pte Ltd ("Jurong") arising out of Jurong's termination of

four Drilling Rig Unit ("DRU") contracts, whereby MHW has been awarded an amount

of USD 101,359,024 as payment of termination fees ("Termination Fee"). In

addition, MHW has been awarded reimbursement of legal costs and certain

suspension costs (total about USD 7 million), as well as interest which will be

calculated and resolved in due course.

Although the DRU contracts are held by MHW, which is a wholly owned subsidiary

of HMH Holding B.V. ("HMH"), Akastor ASA (OSE: AKAST) holds full financial

interest in these contracts as this was not included in the transaction when HMH

was created in 2021. The DRU contracts were originally entered into in 2012 and

were terminated by Jurong in 2021 and 2022 after having been suspended for many

years. The DRU contracts form part of the intended deliverables under the

drilling rig contracts that Jurong had entered with Sete Brasil and where a full

and final settlement agreement was reached between Jurong and Sete Brasil in

Jurong is a subsidiary of Seatrium Limited (former Sembcorp Marine) which is

listed on the Singapore stock exchange (SGX:S51).

The Termination Fee and cost reimbursement will be included on the Akastor

balance sheet as a receivable and an estimated accounting gain of about USD 55

million will be booked in Q1 2024 financials (excluding value of interest

awarded which shall be calculated in due course).

Pursuant to the SIAC Rules, the arbitration award is full and final. However,

the parties may within 30 days of receipt of the award request the tribunal to

correct any error in computation, any clerical or typographical error or any

error of a similar nature.

For further information, please contact:

Øyvind Paaske

Chief Financial Officer

Tel: +47 917 59 705

Oyvind.paaske@akastor.com

Eirik Thomassen

General Counsel

Tel: +47 99 51 35 80

eirik.thomassen@akastor.com

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act. This stock exchange

release was published by Jing Taklo, Head of Financial Reporting, Akastor ASA,

on 18 April 2024 at 07:30 CET.

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Akastor is a Norway-based oil-services investment company with a portfolio of

industrial holdings and other investments. The company has a flexible mandate

for active ownership and long-term value creation.