Emas Offshore agrees to settle dispute with Perisai over US$43m put option

OILFIELD services provider Emas Offshore has settled a dispute with its Malaysian associate Perisai Petroleum Teknologi Berhad over a put option that Perisai has exercised to force Emas to cough up US$43 million to buy over Perisai's entire 51 per cent stake in the two companies' joint venture SJR Marine.

To settle the dispute fully and finally, Emas agreed on Friday to pay up for the 51 per cent SJR stake if several conditions are met within the next four months or an agreed-upon long stop date, it said in a Singapore Exchange filing on Friday.

It said that it would pay Perisai US$20 million out of the total US$43 million consideration in cash after all the conditions were met. For the remainder, it will pay that 15 years after the US$20 million or when Emas has fully repaid all its indebtedness, whichever happens earlier, it added.

Emas shares were not traded on Friday. They last closed flat at S$0.085 on Thursday.