Total Wins $120M Compensation from Rosneft
MOSCOW May 16, 2007 (Dow Jones Newswires)
An arbitration court in Brussels has ordered Russian oil firm OAO Rosneft (ROSN.RS) to pay French oil major Total SA (TOT) $120 million in compensation for an option it once held in the Taymyrneft oil company, Russian newspaper Vedomosti reports Wednesday, citing a source familiar with the situation.
Rosneft's annual report says the company paid Total $120 million, and the source specified the payment had been ordered by the Brussels court.
Taymyrneft is one of the license holders for the Vankor oil field now being developed by Rosneft. Total once held an option for 60% of the company, but lost it when Rosneft bought the firm that had sold the option to Total, and decided to develop the fields alone. Rosneft has argued the terms of the option weren't fulfilled.
Total had originally asked for $700 million in compensation, according to the paper, which also says neither company would comment.
The court had earlier rejected Total's claim for the return of its 52% option for another of the Vankor license holders, Yeniseyneft.
Copyright (c) 2007 Dow Jones & Company, Inc.
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