Spain's Repsol Faces $5.5 Billion Claim From China's Sinopec
June 17 2016 - 8:37AM
Dow Jones News
By Razak Musah Baba
LONDON-- Repsol SA said it faces a $5.5 billion arbitration
claim from Chinese state-controlled energy company Sinopec.
The claim relates to a U.K. joint venture between the Chinese
and a Canadian firm which the Spanish oil producer acquired last
year.
Sinopec International Petroleum Exploration and Production Corp.
and its subsidiary Addax Petroleum U.K. Ltd. have initiated
arbitration proceedings against Talisman Energy Inc.--today known
as Repsol Oil & Gas Canada Inc.--for the repayment of their
investment in the joint venture in 2012, Repsol said on Friday.
The claim, in which Talisman Colombia Holdco. is also named,
includes a demand for compensation for subsequent investment in the
British business and any loss of opportunity, Repsol said on
Friday.
The Spanish company said the claim is "baseless" and considered
a "remote risk" to Repsol and Talisman.
Officials at Addax weren't immediately reachable for
comment.
Addax, which owns a 49% stake in Talisman Sinopec Energy UK,
intends to maintain its holding in TSEUK, Repsol said.
"The claimants' proceedings can be interpreted as a defensive
action undertaken by those who adopted an investment decision in
the U.K. which hasn't delivered the results expected by them, as it
has also happened with other investments by this group of
companies," Repsol said.
Aberdeen, Scotland-based TSEUK is a North Sea-focused oil and
gas exploration and production company.
Write to Razak Musah Baba at Razak.Baba@wsj.com
(END) Dow Jones Newswires
June 17, 2016 08:22 ET (12:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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