Sinopec Serves $5.5B Arbitration Notice To Repsol
MADRID, June 17 (Reuters) - Chinese energy conglomerate Sinopec has served an arbitration notice to Spain's Repsol demanding around $5.5 billion in compensation over a 2012 joint venture, Repsol said on Friday.
Sinopec and subsidiary Addax Petroleum UK are seeking compensation for their initial investment and lost investment opportunities stemming from a North Sea oil and gas fields venture deal with a firm called Talisman which Repsol bought in 2014.
The claim has no foundation and is deemed a remote risk by legal advisers, Repsol said.
"The arbitration notice is unfounded and does not reflect the loyal attitude one would expect from a partner," it said in a statement.
Repsol reported a loss last year and has slashed its dividend. It has announced a 40 percent cut in exploration and production investment and asset sales in a bid to protect its investment grade credit rating.
Talisman has cut hundreds of jobs at loss-making joint venture Talisman Sinopec Energy UK (TSEUK) due to falling production and rising operating costs.
(Reporting by Sonya Dowsett; editing by Jesus Aguado and Jason Neely)
WHAT DO YOU THINK?
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.
- Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
- Repsol Says Drilling Suspended On Vietnam Oil Block Disputed By China (Aug 02)
- China Urges Halt To Oil Drilling In Disputed South China Sea (Jul 25)
Company: Sinopec more info
- Lead a Chinese Oil Giant and Get a Fraction of Your Peers' Pay (Dec 27)
- Report: Quarter Of Oil Refineries Risk Closure Under Climate Goals (Nov 02)
- Sources: China's Sinopec Mulls US Oil Projects Ahead Of Trump's Visit (Oct 31)