42. JOINT ARRANGEMENTS AND PRINCIPAL ACTIVITIES (CONT'D.) (a) Joint ventures and principal activities (cont'd.) Effective interest Country of held (%) Name of company incorporation Principal activities 2021 2020 MMHE-TPGM Sdn. Bhd. **** Malaysia Dormant 39.9 39.9 MMHE-ATB Sdn. Bhd. *** Malaysia In Liquidation 26.6 26.6 T.En MHB Hull Engineering Malaysia Dormant 33.3 33.3 Sdn. Bhd. **** (formerly known as Technip MHB Hull Engineering Sdn. Bhd.) SL-MISC International Sudan In liquidation 49 49 MISC Shipping Services United Arab Liquidated – 49 UAE (LLC) *** Emirates *** Even though the Group holds less than 50% equity interest in these companies, all material operational and financial matters require unanimous consent of the joint venture parties. **** Even though the Group holds 50% or more than 50% equity interest in these companies, all material operational and financial matters require unanimous consent of the joint venture parties. 42. JOINT ARRANGEMENTS AND PRINCIPAL ACTIVITIES (CONT'D.) (b) Joint operations Details of the Group’s joint operations are as follows: Effective interest held by the Group (%) Name 2021 2020 Technip MMHE (Malikai) 33 33 Joint Venture Technip MMHE (SK316) 33 33 Joint Venture Technip MMHE (Kasawari) 40 40 Joint Venture Technip MMHE (Malikai) Joint Venture, Technip MMHE (SK316) Joint Venture and Technip MMHE (Kasawari) Joint Venture are unincorporated joint ventures between the subsidiary, MMHE and Technip Geoproduction (M) Sdn. Bhd. to undertake specific engineering, procurement and construction, installation and commissioning projects. 43. SIGNIFICANT EVENTS (a) Material litigation (i) Gumusut-Kakap Semi-Floating Production System (L) Limited (“GKL”) and Sabah Shell Petroleum Limited (“SSPC”) We refer to previous announcements made by MISC Berhad (“MISC or the Corporation”) in respect of the Arbitration Proceedings commenced by the Corporation’s wholly-owned subsidiary, GKL against SSPC. As announced on 10 April 2020, the Arbitral Tribunal has issued its Award on 8 April 2020 (“Award”) which found, among others, as follows: 1) That GKL’s claim in relation to the achievement of Handover Completion under the Contract was rejected and the Arbitral Tribunal decided that Handover Completion did not occur prior to 11 October 2014; 2) In relation to GKL’s claims for Variation Works, GKL was awarded: a. USD 222,132,575.60; b. That an amount of USD88,791,006.17 is deducted from USD222,132,575.60 being manpower costs incurred by way of the Variation Works for rectification of defects (which the Tribunal held GKL to be liable for); c. That the remainder sum of USD133,341,569.49 is converted to an Additional Lease Rate and represents a reduction from the Additional Lease Rate awarded by the Adjudication Awards. The new Additional Lease Rate is payable from the date of the Award. The base rate is unaffected by the Award and will continue for the Fixed Term. NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 MISC Berhad 442 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 443 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
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