Oilex wins West Kampar arbitration

Australian oil firm Oilex Ltd announced on Thursday that the International Court of Arbitration of the International Chamber of Commerce (ICC) has found in favour of its subsidiary Oilex (West Kampar) Limited (Oilex) in its claim against PT Asiabumi Petroleo (Asiabumi) for the recovery of US$4.6million that is owed to Oilex.

PT Asiabumi Petroleo is the parent company of PT Sumatera Persada Energi (SPE). SPE is a party to the joint venture and the Operator of the West Kampar Production Sharing Contract (PSC) in Central Sumatra.

The Award granted in Oilex's favour takes effect immediately, it said.

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, it said.

SPE's obligations to repay the debt were secured by a parent company guarantee granted by Asiabumi to Oilex in 2008.

?Oilex will now immediately pursue the enforcement of the Award against Asiabumi to recover the amount due,? the Company said.

Watson Farley & Williams LLP?s Singapore office acted for Oilex in the Arbitration.

The Company said Oilex now has 67.5 percent interest in the block as it is entitled to have assigned an additional 22.5% to its holding through the exercise of its rights under a Power of Attorney granted by SPE following the failure of SPE to repay funds due.

?The assignment has been provided to BPMigas but has not yet been approved or rejected. If Oilex is paid the funds due then it will not pursue this assignment.? It added. (alex)