Singapore-based independent KrisEnergy has settled its arbitration with Northern Gulf Petroleum over a dispute relating to KrisEnergy’s G6 / 48 block operations off Thailand.
The northern Gulf on Tuesday struck an agreement that allowed it to pay KrisEnergy nearly US $ 2.5 million in full and final settlement of its share of the costs until February 28 of this year.
The northern Gulf had notified in July 2019 a notice of arbitration to the subsidiary KrisEnergy (Gulf of Thailand) Ltd (KEGOT).
The claim alleged by Northern Gulf arose out of the joint exploration and exploitation of the oil concession relating to the Gulf of Thailand development block G6 / 48 where Northern Gulf contested the takeover by KEGOT of the conduct of a ” exclusive operation âon the block.
At the time, KrisEnergy said it believed, in consultation with legal advisers, that the claims made by the northern Gulf “are baseless for a variety of reasons,” adding that it would take legal advice and vigorously defend its claims. rights against the G6 block. / 48 partner.
The settlement payment allows the northern Gulf to hold a âlegitimateâ 57% stake in the âexclusive transaction,â KrisEnergy said Wednesday.
However, the settlement act does not prevent KEGOT from taking action against the northern Gulf for any failure to pay future cash calls from March 2021.
KrisEnergy, according to its website, has a 30% working interest in the G6 / 48 reservation area and a 100% working interest in the G6 / 48 production area, which contains the development of the Rossukon oil field.
The other partners in the G6 / 48 reservation zone are the northern Gulf with 40% and Mubadala Petroleum with 30%.
The G6 / 48 shallow water concession covers 371 square kilometers in the Karawake Basin on the western margin of the Pattani Basin in the Gulf of Thailand.