BMG Project Participants File Defense in Australian Court

Reference is made to the Stock Exchange Release made on February 20, 2009 by ROC on behalf of its subsidiary, Anzon Australia Pty Limited ("AZA") in relation to a notice of a claim served on the participants in the BMG Project by BW Offshore ("BW") in the Federal Court of Australia. The notice of claim sought recovery of costs by BW relating to the termination of third party vendor contracts entered into by BW. These third party contracts related to performance of initial activities under a Letter of Intent ("LOI") between AZA and BW for supply of a floating production, storage and offloading vessel ("FPSO") for the proposed BMG Phase 2 Project.

Today, the participants in the BMG Project have jointly filed a Defence to the Statement of Claim in the Federal Court of Australia. In addition, AZA, as Operator on behalf of the BMG Joint Venture, has filed and served a Cross Claim on BW due to the reliance by the BMG Joint Venture on the supply of the FPSO pursuant to the LOI, seeking recovery of drilling related costs in a range of between US $63.4 million and US $86 million with further losses to be particularized at a later date.

Participating interests in the BMG Project are as follows:

  • Anzon Australia Pty Limited (Operator); 40%
  • Beach Petroleum Limited; 30%
  • CIECO Exploration and Production (Australia) Pty Ltd; 20%
  • Sojitz Energy Australia Pty Ltd;10%

Most Popular Articles