CBM Asia Updates on Kutai II Arbitration
The International Chamber of Commerce (ICC) has ruled against CBM Asia’s claim on the Kutai II CBM production sharing contract, East Kalimantan.
The company had previously written off 100% of its $40,546 investment in the property during the second quarter of 2011.
TCBM Asia entered into a partnership with PT Ephindo for initial study of Kutai II block with potential participating interest of 40%.
The company received a notice from Ephindo in 2011 claiming CBM Asia was in default to post a US$1 million study bond in connection with the preparation of a joint evaluation report with the government of Indonesia for the Kutai II Block.
CBM Asia then started arbitration proceedings in Singapore to secure its interest in any future PSC granted for the Kutai II Block.
LNG World News Staff, September 16, 2013; Image: CBM Asia