Oilex LTD

In November 2006, Oilex (JPDA 06-103) Ltd (Operator) and the Joint Venture parties entered into a Production Sharing Contract (PSC) with the Designated Authority for JPDA 06-103 with an effective date of 15 January 2007.  

On 12 July 2013 the Operator, on behalf of the Joint Venture participants, submitted to the Autoridade Nacional do Petroleo e Minerais (ANPM), a request to terminate the PSC by mutual agreement in accordance with its terms and without penalty or claim. This request arose from the ongoing uncertainty in relation to security of tenure in the PSC area attributable to ongoing arbitration proceedings between signatories to the Treaty on Certain Maritime Arrangements in the Timor Sea.  On 15 May 2015 the ANPM issued a Notice of Termination and Demand for Payment (Notice) in the form of a monetary claim for US$17,018,790.  This amount reflects the ANPM’s estimate of the cost of exploration activities not undertaken in 2013, as well as certain local content obligations set out in the PSC. 
 
The Joint Venture rejected this claim on the basis it considers a nil penalty should be imposed as the Joint Venture conducted significant Exploration which was not properly credited in accordance with the PSC.  

On 22 October 2018, the Autoridade Nacional de Petoleo e Minerais (ANPM) issued arbitration proceedings against the Joint Venture. In August 2019, the Company announced that it had submitted the Respondent’s First Memorial to the International Chamber of Commerce in Singapore.  Furthermore, following a substantive legal and independent expert review, the joint venture has also lodged a US$23.3 million counterclaim against the ANPM as damages from the wrongful termination.  The arbitration hearing is scheduled to commence in February 2020.   Each Joint Venture party remains jointly and severally liable and has provided parent company guarantees.  A notice of default has been issued against both Videocon JPDA 06-103 Limited and GSPC (JPDA) Limited for their failure to pay the joint venture cash calls.

JPDA 06-103 Participants

Oilex Ltd (Operator)	10%
Pan Pacific Petroleum Ltd	15%
Japan Energy	15%
Gujarat State Petroleum Corporation	20%
Bharat Petroleum Resources Ltd	20%
Videocon	20%

 
The JPDA 06-103 PSC was terminated 15 July 2015. The Joint Operating Agreement between the Joint Venture participants is still in effect.