Singapore-listed offshore services provider Ezion Holdings refuted claims of breaching charter agreements and said the claims were “frivolous and without merit”.
According to the company’s filing to the Singapore Exchange, Ezion has three service rigs that are currently working in the North Sea, operated by the Netherlands-based integrated offshore service company, Atlantic Marine Services (AMS), for a Europe-based multinational oil major.
Ezion has received feedback that AMS has failed to meet their contractual and operational obligations and is currently in discussions with the oil major on how to better serve its requirement, which may include Ezion taking over the operations of the three service rigs.
However, AMS objected to the notion of Ezion taking over the operations of the three service rigs and has threatened to take whatever actions to stop the communication between Ezion and the oil major. Thus, AMS decided to file a lawsuit seeking an injunction to restrain Ezion from communicating with the oil major to terminate its contract with AMS without putting a monetary value to the claim.
Ezion stated that it will continue the discussions with the oil major and whatever the outcome of the lawsuit, is not expected to have a material impact on the company’s earnings per share or net tangible assets per share for the financial year ending 31 December 2015.