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.