JAKARTA (TheInsiderStories) – PT Medco Energi Internasional Tbk (“IDX: MEDC)) announced today that an UNCITRAL Arbitration Tribunal has awarded its Singapore based wholly-owned subsidiary Medco Strait Services Pte Ltd approximately US$24 million pursuant to its claims against Singapore Petroleum Ltd. and Cue Energy Pty Ltd.
Roberto Lorato, CEO of MedcoEnergi commented with the arbitration tribunal award which confirms their position as having acted in good faith and in full adherence to the contractual obligations. Singapore Petroleum Sampang Ltd (SP Sampang), a wholly owned subsidiary of Singapore Petroleum, sold their interest in the Jeruk oil field located in the Sampang Production Sharing Contract in the Madura Strait, offshore East Java to Medco Strait Services in 2006.
Under the Medco transaction, SP Sampang transferred approximately 18.2 percent of its 40 percent interest in the Jeruk field to Medco in exchange for Medco’s reimbursing $16 million of previous costs incurred by SP Sampang in developing the Jeruk field, and undertaking to imburse 90.91 percent of the premium that SP Sampang is required to pay out of future Jeruk production, valued at approximately $132 million. (*)