Page 8 - AsianOil Week 33
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AsianOil SOUTHEAST ASIA AsianOil
Oilex files counterclaim in dispute with Timor Leste
POLICY
AUSTRALIAN developer Oilex has filed a $23.3mn counterclaim against the Timor Leste government relating to an ongoing dispute over an o shore production-sharing contract (PSC).
e two sides disagree over the terms of the Joint Petroleum Development Area (JPDA) 06-103 licence’s termination, which Oilex and its partners entered into in November 2006.
Oilex operated the concession with a 10% stake, while Gujarat State Petroleum Corp. (GSPC), Bharat Petroleum Resources Ltd (BPRL) and Videocon each owned 20%, and Pan Paci c Petroleum and Japan Energy each held 15%. JPDA 06-103 covers 1,870 square km of the Northern Bonaparte Basin in the Timor Sea.
Oilex sought to terminate the PSC without penalty in July 2013, noting at the time that the country’s maritime boundary dispute with Aus- tralia had created uncertainty over the contract’s duration.
In July 2015, oil and gas regulator Autori- dade Nacional Do Petroleo E Minerais (ANPM) terminated the PSC and demanded a $17mn penalty payment for exploration activities not conducted in 2013 as well as certain local content obligations set out in the contract. ANPM then amended its claim to $22.26mn.
ANPM sought arbitration from the Interna- tional Chamber of Commerce (ICC) in Singa- pore in October 2018. A hearing is scheduled to commence in February 2020.
Barring the fact that Oilex believes the pen- alty payment not to be applicable under the terms of the contract, it added that it had arrived at its counterclaim gure based on factors that included the joint venture’s over-spending on the PSC’s work programme. The company added that ANPM had failed to assess correctly and award credit for this additional expenditure when it terminated the PSC.
Oilex managing director Joe Salomon said: “It was disappointing that the ANPM elected to pursue arbitration. e $23.3mn counterclaim further supports our view that the joint venture has previously and will continue to act in good faith, with previous o ers to settle the matter being generous.”
EAST ASIA
CNPC subsidiaries cancel plan to load Venezuelan crude
PROJECTS & COMPANIES
TWO subsidiaries of state-owned China National Petroleum Corp. (CNPC) have report- edly dropped plans to take delivery of several cargoes of Venezuelan crude oil in light of the US government’s decision to impose harsher sanctions on Caracas.
Sources with knowledge of the matter told Bloomberg and Reuters anonymously last week that PetroChina and ChinaOil had been slated to pick up about 5mn barrels of Venezuelan oil in the month of August. ey then decided against loading the crude a er the administration of President Donald Trump widened the scope of restrictions on trade with Venezuela, they said.
Reuters quoted one source as saying that the Chinese rms had been motivated by the shi in US policy. “Trump’s executive order gave a directive for the follow-up sanction measures that shall be announced by the US Treasury ... CNPC is worried that the company is likely to be hitbythesecondarysanctions,”hecommented.
Other sources explained that PetroChina and ChinaOil were having di culty arranging to transport the cargoes from Venezuela. e companies have not been able to charter tankers, since most shipping rms have been unwilling to make their eets available for this purpose, traders told Reuters.
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w w w . N E W S B A S E . c o m Week 33 21•August•2019
