EMAS Offshore, a unit of Ezra Holdings, said it is seeking legal advice after Perisai Petroleum Teknologi said it had regained the right to sell its 51 percent in the joint venture, SJR, following the lapse of a settlement agreement between the two companies.
SJR, based out of Malaysia, is a single purpose company which owns the marine vessel Enterprise 3. SJR does not have any employees and all management functions have been carried out by Emas Offshore and Malaysia-based upstream oil & gas service provider Perisai.
In December last year, Emas entered into a settlement agreement relating to the US$43 million put option with Perisai.
Completion of the proposed settlement agreement was conditional upon satisfaction of certain conditions within a certain timeframe, or "long stop period".
In a filing to Bursa Malaysia, Perisai said on August 17 that Emas confirmed that it had not received any representation from OCBC which would allow it to conclude whether or not the conditions precedents would be satisfied.
Perisai said following the lapse of the proposed settlement agreement, the put option granted by Emas to Perisai to sell its stake in SJR had therefore been revived, and it will seek to complete the put option within 30 days from August 17.
"The Company is seeking legal advice in respect of the matters set out in the Perisai announcement," Emas said in a statement on Sunday.
Shares in Emas were halted from trading on the Singapore Exchange while Perisai Petroleum was unchanged at 0.05 Malaysian Ringgit on Bursa Malaysia.
