Indonesia-focused Ramba Energy Limited (the Company and, together with its subsidiaries, the Group) referred Thursday to its announcements on May 23, 2012; June 1, 2012; and June 15, 2012.
The Board wishes to announce that it has been informed March 30 that Super Power Enterprises Group Ltd (SPE or the Claimant) had commenced arbitration proceedings against PT Hexindo Gemilang Jaya (Hexindo) (and together with SPE, the Parties) with a Notice of Arbitration (the Notice) pursuant to the arbitration rules of the Singapore International Arbitration Centre (the SIAC Rules and SIAC respectively). The Company owns 80.4 percent of the share capital in Hexindo. Hexindo is a limited liability Indonesian company incorporated under the laws of the Republic of Indonesia and it is the entity through which the Group carries out its oil and gas exploration activities in the Lemang Production Sharing Contract (the Lemang PSC).
Hexindo and SPE entered into a contractual joint venture established under a joint operating agreement (JOA) Oct. 13, 2009. Under the JOA, Hexindo and SPE each held a 51 percent and 49 percent participating interests in the Lemang PSC respectively.
The Notice is in relation to a claim by SPE over the forfeiture of its 49 percent participating interest in the Lemang PSC (the Forfeiture) by the Government of Indonesia (GOI) more than three years ago which resulted in its eventual substitution by a third party, Eastwin Global Investments Limited (Eastwin), as owner of the said 49 percent participating interest in the Lemang PSC (the Lemang Interest). In commencing the arbitration proceedings, SPE is seeking (A) a determination that the Forfeiture of the Lemang Interest and the subsequent substitution with Eastwin were, and continue to be, unlawful because, inter alia, (i) the forfeiture provisions in the JOA which were relied upon by Hexindo were allegedly penal and unenforceable, and (ii) in any event, the Forfeiture allegedly did not follow the requirements of the JOA; and secondly, (B) damages, less any compensation due to Hexindo, plus interest up to the date of the award. The Claimant’s request for reliefs left damages effectively to be assessed by the SIAC’s tribunal.
Upon the GOI approving the substitution by Eastwin as the new owner of the Lemang Interest on Aug. 26, 2011, Hexindo and Eastwin subsequently signed a new joint operating agreement Dec. 19, 2011 (New JOA). Under the New JOA, Eastwin assumed all rights and liabilities of SPE.
Accordingly, the Board sees no merit in SPE’s claims and Hexindo will vigorously defend its rights against SPE in the latter’s claim against the Forfeiture of the Lemang Interest. The Company will make such further announcements as and when material developments in the present matter arise.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you