Romania wins lawsuit against Chevron, which should pay damages of USD 73m. Ruling not final

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Romania has won the lawsuit against Chevron, and the US giant should pay damages of USD 73 million to the National Agency for Mineral Resources (ANRM) following the annulment of three oil concession agreements without complying with the financial obligations under the Petroleum Law. The decision was made by the International Court of Arbitration and may be challenged in France, stiri.tvr.ro informs.

In 2011, Chevron concluded with ANRM three concession agreements for the exploitation in Costinesti, Vama Veche and Adamclisi, but three years later it renounced. However, the Romanian authorities refused to issue the decision to terminate the concession because the US company allegedly did not pay for the works of the minimal operating programme.

In a government announcement announcing the winning the lawsuit, it is stated that the breached financial obligations are stipulated in the Petroleum Law.

“According to the ruling, Chevron has pay to ANRM the amount of USD 73,450,000, plus the legal interest rate according to the BNR reference rate +8%, calculated from October 23, 2014 until the date of full payment, as well as the arbitration expenses paid by ANRM,” the press release reads.

The Government notes that in the lawsuitof with Chevron, ANRM was represented by the Law Office Zamfirescu Racoţi & Partners.

According to the Executive, ANRM and Chevron Romania Holdings concluded, on March 3, 2011, three concession agreements for the exploitation-development-exploration in the EX-17 Costineşti, EX-18 Vama Veche and EX-19 Adamclisi perimeters approved by Government Decisions, which stipulated minimum exploration obligations assumed by Chevron.

In November 2014, Chevron informed ANRM that it was giving up the concession agreements. ANRM refused to issue the decision to terminate the concession, due to the petroleum company’s failure to comply with Article 40 of the Petroleum Law. Chevron did not make available to the competent authority the amount representing the value of works provided by the minimum exploration programme set under the oil agreement and development and exploration agreement, maturing on the date of notification of the renouncement and not executed for reasons attributable to the holder of the oil agreement, the release informs.

The US company appealed to the Court of Arbitration in June 2015, claiming that it had fulfilled its obligations under the oil agreements with ANRM to terminate the contracts.

By the end of 2015, ANRM submitted to the Court of Arbitration in Paris both the response to the arbitration request and a counterclaim by which it formulated financial claims resulting from the concession contracts. During June 19-23, 2017, the final hearings were held in Paris in the Chevron vs. ANRM (21138 / MHM) and the decision of the Arbitration Court was pronounced in favour of ANRM, the Government press release informs.

 

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