This is to notify that Japan Canada Oil Sands Limited (hereinafter referred to as “JACOS”) filed a claim by an arbitration against Toyo Engineering Corporation and its subsidiary in Canada, Toyo Engineering Canada Ltd. (hereinafter referred to as “Toyo-Canada”).
1. Outline of Arbitration
(1) Place of Arbitration: Calgary, Canada
(2) Applicable Law: Canadian Law
(3) Date of Request: October 10, 2018 (October 9 local time)
2. Counterparty
(1) Name: Japan Canada Oil Sands Limited
(2) Address: 2300 Standard Life Building, 639-5th Avenue S.W., Calgary, Alberta, Canada T2P 0M9
(3) Representative: Satoshi Abe, President
3. Project outline
(1) Owner: JACOS
(2) Contractor: Toyo-Canada
(3) Construction site: Hangingstone Alberta, Canada
(4) Subject of Facility: SAGD Extra heavy oil treatment facility
(5) Scope of work: Detail engineering, Procurement, Construction
(6) Form of contract: Detail engineering and Procurement portions by lump sum, Construction portion by cost reimbursement
(7) Date of Contract: September 2013
(8) Date of Completion: February 2017, in operation ever since.
4. Causes and circumstances of the Claim
On account of a large excess of actual construction costs over the target budget at the time of contract, JACOS alleges to claim minimum 300MM Canadian Dollars for compensation for loss.
5. Prospects
We cannot accept the claim as it lacks basis where the construction portion was on cost reimbursable basis. We will establish our legitimacy through arbitration proceedings.
No impact on our performance can be assessed at this point in time, but if there arises anything to be disclosed, we will notify accordingly.
Oct. 11, 2018