puffin fpso dispute, page-2

weilikong,
the following is from Note 11 to the Half Year Financial Statements which seems to answer your query:-

For The Half Year Ended 31 December 2009
11. COMMITMENTS AND CONTINGENCIES
Legal Claims
Puffin FPSO Dispute
The Puffin Joint Venture has embarked upon a process of dispute resolution and confidential arbitration with
Puffin FPSO relating to the termination of and alleged material breaches in respect of the FPSO Charter Contract
and other matters between the Puffin Joint Venture and Puffin FPSO, under which Puffin FPSO has claimed certain
amounts from the Puffin Joint Venture and the Puffin Joint Venture has claimed and may claim certain additional
amounts from Puffin FPSO.
In addition, proceedings have been commenced in the Supreme Court of Victoria. The subject of those
proceedings relate to amounts claimed by Puffin FPSO from the Puffin Joint Venture under a tax indemnity and
associated company guarantee and charge and other amounts in relation to the FPSO Charter Contract. The
enforceability of the tax indemnity and the rights to enforce the guarantee and charge and any amounts in
connection with the FPSO Charter Contract are all in dispute. The Supreme Court has granted an injunction in
favour of the Group to restrain Puffin FPSO from enforcing its rights under the charge.
The Group contended that the various disputes between the parties and raised in the Supreme Court proceedings
should be referred to arbitration as required by the agreed dispute resolution processes in the FPSO Charter
Contract. Puffin disputed this. This point was subsequently the subject of an appeal made by the Company to the
Court of Appeal which was heard in January 2010.
On 5 March 2010, the Group received judgment from the Victorian Court of Appeal of the Supreme Court of
Victoria which was in favour of the Group and had the effect that all matters in relation to this dispute will now be
determined at arbitration. The injunction restraining Puffin FPSO from enforcing its rights under the charge
remains in force.
The Group has lodged a cash deposit with the Supreme Court of Victoria in respect of a GST refund dispute.
This deposit is expected to be released shortly as a result of finalisation of the GST refund dispute.
Installation Contractor Dispute
The Company and a subsidiary (Puffin Installation Services Pte Ltd) are defendants to proceedings in the Supreme
Court of Western Australia brought by its installation contractor seeking amounts alleged to be owing arising out
of an installation contract of approximately US$10 million. The Company has issued proceedings in the Supreme
Court of Victoria against the installation contractor, its directors, legal advisers and others for an amount
substantially greater than the amount claimed by the installation contractor. Further, the Company has other
claims against the installation contractor.
The Company disputes it is indebted to the installation contractor.
A conditional settlement has been agreed
between the parties which, if satisfied, will result in the Western Australia proceedings being discontinued and the
Company receiving a payment. The terms of the conditional settlement are confidential and as such the Group is
unable to quantify the amount of the conditional settlement in this half-year report.

ANZ