Jadestone sets in motion arbitration action against Total
Singapore-based oil and gas company Jadestone Energy has started arbitration against the French oil major Total related to a breach of a farm out agreement for an asset located offshore Philippines.
Jadestone informed last week that its subsidiary, Jadestone-56, had started an arbitration action against Total Philippines, a subsidiary of Total.
Jadestone-56 has started the action as a response to the breach of the farm out agreement (FOA) dated August 23, 2012, between Jadestone-56 and Total Philippines in respect of Service Contract 56, Philippines.
Total farmed into the block in exchange for a carry through of the go-forward exploration program. The block covers a total area of around 4,300 km², in water depths ranging from 200 to 3,000 meters.
The operatorship was transferred to Total in 2014, after a decision was made to drill an exploration well on Halcon prospect. Jadestone-56 holds a twenty five percent interest in SC 56, while Total Philippines holds the remaining seventy five percent.
The notice of arbitration was filed with the Singapore International Arbitration Centre in accordance with the terms of the farm out agreement, Jadestone said.
In the notice, Jadestone-56 claims that, among other things, Total Philippines failed to drill an exploration well on the Halcon prospect located within the block covered by Service Contract 56 and is seeking damages as a result of this failure to drill.
Offshore Energy Today Staff