Keppel Offshore & Marine sued in US over investment loss

A view of a Keppel Corporation shipyard in Singapore January 19, 2016. Singapore's Keppel Corporation Ltd said on Thursday its fourth-quarter net profit fell 44 percent and its 2015 profit dropped to a five-year low as plunging oil prices hit demand for offshore rigs. Picture taken January 19, 2016. REUTERS/Edgar Su

KEPPEL Corporation reported that its offshore and marine subsidiary, Keppel Offshore & Marine (KOM), is facing a lawsuit in the United States with a claim that has been quantified at US$819.85 million including interest over the loss of an investment.

However, the mainboard-listed conglomerate said that KOM’s US counsel believes it has “very good defences” to the claim, Keppel Corp said in an update to Singapore Exchange on Oct 25 on the lawsuit from EIG Energy Fund XIV, 8 investment funds managed by EIG Management Company.

It said a summary judgment has been sought by both EIG Energy Fund XIV and KOM on the claim of US$819.85 million, including US$442.22 million in punitive damages and US$156.52 million as pre-judgment interest in the US District Court for the Southern District of New York.

However, a date for the hearing has not been fixed, while the relevant legal documents for the application are due on Nov 2.