Oilex struggles to recover debt owed by Indonesian partner

Australian oil firm Oilex Ltd is struggling to recover debt owed by its Indonesia partner PT Sumatera Persada Energi (PSE), operator of the West Kampar PSC in Central Sumatra.

?A court approved Scheme of Arrangement has been implemented over the Indonesian Operator, however, Oilex continues to pursue enforcement of the Arbitration Award and a commercial settlement,? Oilex said in a statement on Monday.

At the end of 2016 PSE applied in the Indonesian courts for a debt payment obligation suspension. This was denied and PSE was declared bankrupt. A creditors meeting was held in January 2017, Oilex said.

?Oilex has instructed its Indonesian based lawyers to submit a revised claim in the courts covering refund of monies provided by Oilex to the Operator, accrued interest, arbitration and legal costs and loss of profits,? the company said.

Oilex said it is also seeking confirmation from the Indonesian Government regulator that Oilex still retains its original 45 percent participating interest in the PSC.

Oilex acquired the 45 percent shares in the West Kampar PSC in 2007, with SPE retaining a 55 percent stake as operator.

Following a dispute with SPE in 2009, 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 US$4.8 million that is owed to Oilex. Asiabumi is the parent company of SPE.

Editing by Reiner Simanjuntak