Primeline Energy Holdings has announced that it has sent a letter to China National Offshore Oil Corporation (CNOOC) giving formal notice of its intention to commence arbitration proceedings against CNOOC Group under the provisions of the petroleum contract for Block 25/34.
The arbitration relates to Primeline’s continuing dispute with CNOOC Group with regards to the development, production and sales of gas from the LS36-1 gas field. Primeline has appointed an arbitrator and will file the formal Notice of Arbitration in accordance with the UNCITRAL Arbitration Rules 1976 and the arbitration agreement under the petroleum contract.
In April, Primeline Energy also commenced arbitration against Zhejiang Gas Natural Gas Development, a 30% owned subsidiary of CNOOC, over payment disputes.
Primeline is an exploration and production company focusing exclusively on China natural resources to become a major supplier of gas and oil to the East China market. It has a number of petroleum contracts with CNOOC.
