ASKER, NORWAY (1 June 2010) - TGS and Nordic Maritime Pte Ltd (Nordic Maritime) have signed a settlement agreement today related to the material breach dispute between the two companies. TGS has reached a settlement in which it will pay 2.5 million USD to Nordic Maritime.
As disclosed in TGS 2009 Annual Report, TGS made provision for costs associated with this dispute in the 2009 financials. The net effect of the 2.5 MUSD settlement on TGS 2010 financials is considered to be immaterial.
The settlement document will be used to close the arbitration proceedings and release the bank guarantee raised by TGS. The agreement provides for all claims either party have against the other party, to be lifted.