Arbitration Claim by Canada's JACOS in an Oil Sands Facilities Project
First written in FY2019-Q3. 1 of 3 entries say "Restated". Latest entry: FY2022-Q2.
The whole theme swung hardest in 2019: 3 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2022-Q2MitigatedAnnual report
「The company and its Canadian subsidiary Toyo Engineering Canada Ltd. (hereinafter, collectively, the “Company”) had been subject to an arbitration claim in Canada from Japan Canada Oil Sands Limited (hereinafter, “JACOS”), and received the arbitrator's award dated 23 September 2021. The Company's position was upheld, and JACOS's claim was almost entirely dismissed.」
Regarding JACOS's arbitration claim, the company received the award dated 23 September 2021, its position was upheld, and the claim was almost entirely dismissed. - FY2019RestatedAnnual report
「The company considers JACOS's claim to lack a legal basis under the contract, among other reasons because the construction portion, where costs were said to have increased substantially, was performed on a cost-reimbursable basis. Through the subsequent arbitration proceedings, it will explain the facts and legal basis and assert the validity of its position.」
The company has reaffirmed its position, based on the cost-reimbursable contract, and its response policy in the arbitration proceedings regarding JACOS's arbitration claim of at least CAD 300 million. - FY2019-Q3First statedAnnual report
「In October 2018, the company and its Canadian subsidiary Toyo Engineering Canada Ltd. (hereinafter, collectively, the “Company”) received an arbitration claim in Canada from Japan Canada Oil Sands Limited (hereinafter, “JACOS”). In 2013, JACOS awarded the Company the detailed design, procurement and construction of SAGD-process oil sands extra-heavy oil processing facilities at the Hangingstone project in Alberta, Canada (the detailed design and procurement portions were performed for a lump-sum fixed price, while the construction portion was performed on a cost-reimbursable basis; the “Project”), which was completed in 2017. Because the actual cost of the construction portion substantially exceeded the target cost set when the Project contract was executed, JACOS claims that it is seeking at least CAD 300 million (approximately ¥27.0 billion) to compensate for losses it incurred. The Company considers JACOS's claim to lack a legal basis under the contract, among other reasons because the construction portion was performed on a cost-reimbursable basis. Through the subsequent arbitration proceedings, the Company will explain the facts and legal basis and assert the validity of its position.」
In October 2018, the company received an arbitration claim from JACOS concerning an oil sands facilities project using the SAGD process in Canada. The claim was stated to be at least CAD 300 million, or approximately ¥27.0 billion. The company considers the claim to lack a legal basis under the contract, among other reasons because the construction portion was cost-reimbursable, and states that it will assert the validity of its position in the arbitration proceedings.