Chevron says resumes arbitration over Thai gas field
Reuters
Published Oct 02, 2020 07:20AM ET
Updated Oct 02, 2020 07:50AM ET
BANGKOK (Reuters) - U.S. energy major Chevron Corp (NYSE:CVX) has resumed arbitration proceedings with Thailand to resolve a dispute over who should pay for removing offshore oil and gas platforms in the Erawan gas field, the company told Reuters on Friday.
"While the arbitration is regretful, it is necessary to clarify the requirements of the concession agreements," a company spokesman told Reuters.
The Thai energy ministry was not immediately available for comment.
The move came a year after the company had suspended the legal process to allow more time for talks with Thailand's energy ministry, ahead of the expiration of its concession in April 2022.
Thailand wanted Chevron to pay the full decommissioning costs, estimated at around $2 billion, for all infrastructure it had installed at the Erawan gas field, including assets it will hand over to the next operator, Thai state oil firm PTT Exploration (OTC:PEXNY) and Production Pcl.
Chevron argues that under the terms of its initial contracts from 1971 it is only liable for infrastructure that is no longer deemed usable before it hands over the field to another operator.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.