Oilex receives good faith payment on West Kampar arbitration
Wednesday, February 12 2014 - 04:35 AM WIB
Australian oil firm Oilex Ltd announced Wednesday it has received another ?good faith? payment from PT Sumatera Persada Energi (SPE) as part of Oilex?s US$4.8 million arbitration award for the West Kampar site.
The company said that the latest payment made by SPE is an addition to the payment mentioned by Oilex in its December 2013 quarterly report.
?This represents a significant step forward in the ongoing negotiations to reach an amicable commercial settlement to the International Court of Arbitration Award of US$4.8m in favor of Oilex and other associated matters,? the Australian firm said in a statement.
Managing Director of Oilex, Ron Miller, said: ?This is another positive step forward in focusing the company on its core assets and Oilex will persevere with finalizing a commercial settlement of the situation.?
The company said that discussions between the parties to recover the cash continue to progress, and Oilex will inform the market when further material information becomes available.
The International Court of Arbitration of the International Chamber of Commerce (ICC) in June 2010 ruled in favor of Oilex in its claim against PT Asiabumi Petroleo (Asiabumi) for the recovery of $4.8 million that is owed to Oilex.
PT Asiabumi Petroleo is the parent company of PT Sumatera Persada Energi (SPE), a party to the joint venture and the operator of the West Kampar Production Sharing Contract (PSC) in Central Sumatra.
Oilex commenced the ICC Arbitration against Asiabumi, in Singapore in April 2009 following the failure of SPE in early 2009 to repay a debt owing to Oilex under a previous agreement between Oilex and SPE.
Editing by Reiner Simanjuntak