Corporate: Oilex wants to put its legal ruckus with Indian partner to bed
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Junior oil and gas explorer Oilex (ASX:OEX) says it is working hard on trying to resolve the dispute it is having with Gujurat State Petroleum Corporation (GSPC).
GSPC is Oilex’s partner in the Cambay project in India’s western region of Gujarat.
Oilex claims that GSPC hasn’t been contributing its fair share to the project and owes $US3.1m.
The company wanted the interest in the Cambay product sharing agreement transferred back to it because of GSPC’s lack of contribution, but in a number of court hearings last year, Oilex was prevented from taking any action.
Oilex has been working on the Cambay field in Gujarat since 2005 and needs to resolve the dispute if it wants to start drilling at the project.
The company wants to avoid arbitration if it can and is in talks with GSPC and the Indian government to come to some sort of commercial resolution.
But so far, its efforts have come to naught.
“Oilex has worked tirelessly in seeking a resolution and in recent months has submitted several proposals to GSPC for consideration, with the most recent draft proposal tabled on 20 March 2019,” managing director Joe Salomon told investors on Monday morning.
“This is currently under active consideration by GSPC.
“The negotiations have been challenging given the commercial drivers for all parties and the regulatory and administrative imposts, including GSPCs internal financial constraints, and, at this time, a conclusion has not been reached, although discussions continue.”
Oilex said it believes GSPC and the government are considering selling a number of their local joint venture interests.
While the Cambay project does not appear to be one of those interests that is on the sale block, Oilex is watching closely because it has the pre-emptive rights to acquire GSPC’s interest in both the Cambay and Bhandut projects.
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