Paladin in out-of-court settlement with Repsol over Indonesian dispute

UK independent oil company Paladin Resources PLC announced on Thursday that it had reached agreement with YPF Indonesia Limited (YPF), a wholly owned subsidiary of Spanish-Argentinean Repsol S.A., to settle legal proceedings in Dallas, Texas in which Paladin was alleging breach by YPF of the provisions of an area of mutual interest clause in the joint operating agreement for the South East Sumatra Production Sharing Contract, offshore Sumatra.

Under the terms of the settlement agreement, Paladin has received US$9 million from YPF and is in the process of dismissing the proceedings, said the company in a statement. The company did not provide further detail.

Paladin has 7.48 percent working interest in the South East Sumatra PSC, the largest Indonesian offshore oil producer. Repsol is the largest interest holder and operator of the South East Sumatra PSC until it sold its Indonesian assets, including 65.34 percent working interest in South East Sumatra to China's CNOOC Ltd. early this year. (alex)