SINGAPORE (THE BUSINESS TIMES) - Sembcorp Marine (Sembmarine) on Friday (Dec 24) announced that its wholly-owned subsidiary Jurong Shipyard has received a notice of commencement of arbitrations from a vendor over four separate contracts.

The vendor is alleging breach of the contracts, which are for the supply of equipment for some of Jurong Shipyard's projects.

Under these contracts, it is claiming payment for invoices amounting to US$76 million (S$103 million) plus other costs and interests, which Sembmarine said "remain to be proved" by the vendor.

According to Sembmarine, Jurong Shipyard maintains these contracts have been validly suspended or terminated.

The group also said both parties were previously in discussions over the payment claims for such suspension or termination, but have yet to reach an agreement.

Jurong Shipyard has engaged legal advisers for the arbitration proceedings and will defend all claims made against it, said Sembmarine.

Shares of Sembmarine closed 0.1 cent or 1.2 per cent higher at 8.2 cents on Thursday, before the news.