Jadestone ends Vietnam dispute with Inpex unit

Jadestone Energy, an oil and gas company with a focus on the Asia Pacific region, has settled a dispute with Teikoku Oil, a subsidiary of Japan’s Inpex Corporation, in respect of Block 05-1 PSC, located offshore Vietnam.

Block 05-1 PSC, offshore Vietnam - Jadestone
Block 05-1 PSC, offshore Vietnam; Source: Jadestone

On 8 August 2016, Jadestone, through a wholly-owned affiliate, signed a definitive sale and purchase agreement (SPA) with Teikoku, as seller, for the acquisition of a 30 per cent working interest in Block 05-1 PSC.

The agreement was for a total cash consideration of $14.3 million, subject to normal closing adjustments.

On 22 February 2018, Teikoku delivered to the company a notice of termination of the SPA.

According to Jadestone’s press release from 26 February 2018, the company did not accept the termination.

Following prolonged negotiations, the company filed a notice of arbitration in relation to the matter with the Singapore International Arbitration Centre on 3 July 2020.

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Jadestone said on Wednesday 11 November that it had agreed with Teikoku a full and final settlement in respect of the dispute.

When considering the amount payable under the settlement, together with fees payable by the company, Jadestone will not experience a significant increase in its cash position.

Blocks 05-1b and 05-1c are located 350 km offshore Vietnam in the Nam Con Son basin in water depths of around 120 meters.

The Block 05-1 PSC holds two fully appraised gas and condensate discoveries, Dai Nguyet and Sao Vang, in close proximity to the Nam Con Son gas transportation pipeline and existing production facilities.