Oriental Energy enters into arbitration with Petredec

Oriental Energy enters into arbitration with Petredec

Chinese energy trader Oriental Energy has announced that it has entered into arbitration in London with Singapore LPG ship operator Petredec due to disputes over VLGC chartering contracts.

Oriental Energy signed a 10-year time charter contract with Petredec for three 84,000 cu m VLGCs in October 2014.

Oriental Energy claimed that Petredec had refused the company’s navigation requests multiple times which has affected the normal operations of the company and it has notified Petredec to terminate the chartering contracts. However, Petredec claimed that its action of refusing the navigation request is legal.

The two parties have failed to reach an agreement after several negotiations.

Currently the two companies have entered into arbitration process on the chartering contract of VLGC Silvio, and Oriental Energy expects that it will start arbitration procedures for the other two vessels Sansovino and Sunstar soon.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

Related Posts