MOG Awarded Costs after Court Victory

Mediterranean Oil & Gas (MOG) issued a statement Thursday in which it said that following its victory in the legal case brought against it by Leni Gas & Oil at the end of March, the High Court in London ordered Leni to pay MOG's legal costs on an indemnity basis.

Leni had brought the case to settle a dispute it had with MOG over a deal between the two companies involving the Area 4 production sharing contract, offshore Malta in 2012. On March 27, the Commercial Court handed down a judgment in which the judge said "… the claimants' case fails at every stage…"

Leni applied for permission to appeal against the judgment handed on March 27 but permission was refused. Any further application by Leni for permission to appeal has to be made to the Court of Appeal by April 24.

Leni has already agreed to pay an initial (GBP 600,000) as an interim payment to MOG by April 10, although MOG said that it would take some time for the total costs payable by Leni to be agreed.

MOG Chairman Keith Henry commented in its statement:

"MOG’s only objective throughout this process was to protect the interests of our shareholders. The court's award of indemnity costs reflects the judge’s finding that LGO’s claim was 'weak and thin' and it is therefore only right that LGO will have to reimburse substantially all of our legal costs."

Leni said in a separate statement Thursday that the potential cost liability had already been provided for in its cash flow forecasts and that the costs of the case "will not have any material impact" on its ongoing oil production programs in either Trinidad or Spain.


A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at


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