November 12, 2020
Asia-focused oil and gas company Jadestone Energy has settled its dispute with Inpex’s subsidiary Teikoku, related to Block 05-1 PSC, offshore Vietnam.
Jadestone Energy earlier this year started arbitration against Teikoku over Jadestone’s acquisition of an interest in Blocks 05-1 b and c, offshore Vietnam.
Namely, Jadestone in August 2016 signed an agreement with Teikoku to buy a 30% working interest in Blocks 05-1 PSC b and c, for $14.3 million.
Per Jadestone, Inpex then on February 22, 2018, delivered to Jadestone a purported notice of termination of the sales and purchase agreement, despite Teikoku having just received the waiver by Petrovietnam of their statutory pre-emption rights, held under Vietnamese law; and direction from Petrovietnam to complete and submit all documents necessary to effect the transfer of interest to Jadestone.
Jadestone did not accept Inpex’s termination, and after unsuccessful negotiations in 2018 and 2019, it on July 3, 2020, filed a notice of arbitration with the Singapore International Arbitration Centre looking to resolve the issue.
In a statement on Wednesday, Jadestone said that the company and Teikoku agreed “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,” Jadestone said, without providing any further details on the terms of the settlement.