Northern Gulf Petroleum in Default on Manora Oil Project Offshore Thailand

Australia's Tap Oil Limited revealed Monday that on March 20 the Operator of the G1/48 Concession and the Manora Oil Development (Mubadala Petroleum) gave notice to Northern Gulf Petroleum Pte. Ltd. (NGP) that it is in default under the terms of the G1/48 Joint Operating Agreement.

NGP holds a 10 percent interest in the G1/48 Concession and the Manora Oil Development. NGP has failed to pay when due its 10 percent participating interest share of joint account expenses as set out in cash calls. The notice specifies a total sum in default of $27,079,863.37. NGP, and its Bermudan parent company, Northern Gulf Petroleum Holdings Ltd (NGPH) are controlled by Chatchai Yenbamroong.

The G1/48 Joint Operating Agreement prescribes various remedies in respect of a default while it is outstanding. In this circumstance, the remedies range from:

• after 5 business days, NGP losing its entitlement to attend and vote at Operating Committee meetings, and to access any data or information relating to Petroleum Operations
• after 30 days, proceeds from the sale of NGP’s share of Manora crude oil being directed to the non-defaulting parties who have contributed to the default amount to be applied against such contributions; and
• after 60 days, compulsory transfer of NGP’s 10 percent interest to the non-defaulting parties who have contributed to the default amount

Tap will keep the market advised of all material developments in relation to this matter.