Oilex Ltd JPDA Arbitration - Counterclaim for US$23.3m (3495J)
August 16 2019 - 6:54AM
UK Regulatory
TIDMOEX
RNS Number : 3495J
Oilex Ltd
16 August 2019
16 August 2019
ASX: OEX
AIM: OEX
JPDA Arbitration - Counterclaim for US$23.3 million
In October 2018, the Company announced the Autoridade Nacional
Do Petroleo E Minerais (ANPM) had commenced arbitration proceedings
against Oilex and its joint venture partners (Respondents), in
regard to the JPDA production sharing contract (PSC).
The Company announces it has today submitted the Respondents
First Memorial to the International Chamber of Commerce (ICC) in
Singapore. In this regard, following a substantive legal and
independent expert review, the joint venture has lodged a
counterclaim against the ANPM for the amount US$23.3 million (plus
interest) as damages arising from the wrongful termination of the
PSC. Oilex holds a 10% participating interest in the JPDA joint
venture.
The arbitration hearing is scheduled to commence on 10 February
2020.
Background
In November 2006, Oilex Ltd, via its wholly owned subsidiary
Oilex (JPDA 06-103) Ltd (Oilex) and its Joint Venture partners
entered into the PSC. The PSC effective date was 15 January 2007
and Oilex was appointed Operator.
On 12 July 2013, the Operator, on behalf of the Joint Venture,
submitted to the ANPM a Request to Terminate the PSC by Mutual
Agreement in accordance with the PSC terms and without Penalty or
Claim (Request). The Request was issued as a result of ongoing
uncertainty as to security of PSC tenure which arose as a result of
a maritime boundary dispute between the Governments of Timor Leste
and Australia.
On 15 May 2015, the ANPM issued a Notice of Intention to
Terminate the PSC and subsequently, on 15 July 2015, issued a
Notice of Termination and Demand for Payment. The demand for
payment (100%) of the penalty claim of US$17.0 million (plus
interest) reflected the ANPM's estimate of the cost of exploration
activities not undertaken in 2013, as well as certain local content
obligations set out in the PSC. More recently, ANPM has sought to
amend its claim to US$22.26 million.
On 17 October 2018, the Company announced it had received
correspondence from ANPM, the body responsible for managing and
regulating petroleum and mining activities in the Timor-Leste area,
advising that it had submitted a Request for Arbitration (RFA) to
the ICC. The RFA relates to matters associated with the termination
of the PSC by the ANPM.
In addition to other matters, the Joint Venture considers it has
made significant over expenditure in executing the PSC work
programme and further, the ANPM failed to properly assess and award
credit for such additional expenditure when terminating the PSC.
Notwithstanding the Joint Venture considers no penalty payment is
applicable, the parties made a number of unsuccessful attempts to
settle the matter in dispute prior to the arbitration proceedings
issuing.
The obligations and liabilities of the Joint Venture
participants under the PSC are joint and several and all
participants have provided parent company guarantees. The equity
interest of the Joint Venture participants are:
Oilex (JPDA 06-103) Ltd (Operator) 10%
Pan Pacific Petroleum (JPDA
06-103) Pty Ltd 15%
Japan Energy E&P JPDA Pty Ltd 15%
GSPC (JPDA) Limited (#) 20%
Videocon JPDA 06-103 Limited
*(#) 20%
Bharat PetroResources JPDA Ltd 20%
Total 100%
-----
* The Company understands that the parent company Videocon
Industries Ltd is subject to corporate insolvency proceedings and
continues to trade under the supervision of an insolvency
professional.
(#) A notice of default has been issued against both Videocon
JPDA 06-103 Limited and GSPC (JPDA) Limited for their failure to
pay the joint venture cash calls.
Commenting on the arbitration, Managing Director Mr Joe Salomon
said that "it was disappointing that the ANPM elected to pursue
arbitration. The US$23.3 million counter-claim further supports our
view that the joint venture has previously and will continue to act
in good faith, with previous offers to settle the matter being
generous."
For and on behalf of Oilex Ltd
Joe Salomon
Managing Director
For further information, please contact:
Investor AIM Broker AIM Nominated Media Enquires Media Enquiries
Enquiries Cornhill Capital Adviser (UK) (Aus)
Oilex Ltd Limited Strand Hanson Vigo Communications Citadel-MAGNUS
Joe Salomon Broker Limited Public Relations Michael Weir
Managing Daniel Gee Nominated Adviser Patrick Email:
Director Email: Rory Murphy/Ritchie d'Ancona/Chris mweir@citadelmagnus.
Email: danielg@cornhillcapital. Balmer McMahon com
oilex@oilex.com.au com Email: Email: Tel: +618
Tel: +61 oilex@strandhanson.c patrick.dancona@vigo 6160 4900
8 9485 3200 Tel: +44 20 o.uk comms.com Australia
Australia 3700 2500 Tel: +44 20 chris.mcmahon@vigoco
UK 7409 3494 mms.com
UK Tel:+ 44 20 7390
0230
UK
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCSFSFSMFUSEIA
(END) Dow Jones Newswires
August 16, 2019 06:54 ET (10:54 GMT)
Synergia Energy (LSE:SYN)
Historical Stock Chart
From Apr 2024 to May 2024
Synergia Energy (LSE:SYN)
Historical Stock Chart
From May 2023 to May 2024