Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Victoria suspends trading on $12.1mn arbitration penalty

© Supplied by Victoria Oil and GasAerial shot of wells and infrastructure
Victoria Oil and Gas has been forced to suspend trading after a tribunal ruled against in relation to a dispute brought by a partner in Cameroon. Picture shows; The Logbaba field. Douala, Cameroon. Supplied by Victoria Oil and Gas Date; Unknown

Victoria Oil and Gas has been forced to suspend trading after a tribunal ruled against in relation to a dispute brought by a partner in Cameroon.

The International Chamber of Commerce (ICC) made a partial final award for $12.1 million plus interest against Victoria’s local unit, Gaz du Cameroun (GDC). A question around costs and fees for lawyers remains open, with the aim of reaching an agreement by June 30.

RSM Production had taken GDC to arbitration in October 2018.

The tribunal found Victoria had wrongfully included royalty payments as a recoverable cost. This moved the payout date. As a result, this tribunal found the shift cost RSM $10.6mn plus interest – the lion’s share of the total award.

Victoria cannot appeal the award and it must pay the cash without delay. Neither GDC nor Victoria has the ability to pay the award. Victoria had $1.6mn as of the end of June 2021.

RSM and Victoria are working on a “constructive dialogue” on a deal – although the company warned against assuming success. The parties will meet face to face on how to “prospectively maximise the joint venture’s value proposition long-term”.

Legacy issue

Victoria’s non-executive chairman Roger Kennedy joined after the payout calculations had been made. Kennedy said the company must deal with the consequences.

The current management “inherited this 2018 arbitration and they have been working flat out to deal head-on and decisively with all the issues they had inherited, and they had also found time to cultivate a hopper of exciting business development opportunities”, Kennedy said.

However, the chairman did say the company has made “huge strides” in improving its relationship with RSM. “The board thus has confidence in the management to navigate through this legacy issue and return the company to a healthier footing.”

In the meantime, Victoria and GDC will continue producing gas and condensate in Cameroon.

Legendary oilman Jack Grynberg set up RSM. Cameroon awarded Logbaba to RSM in 2001, with the company bringing in Victoria in 2006. The relationship was marked by a number of court disputes – as was much of Grynberg’s life. He died in October 2021.

Recommended for you

More from Energy Voice

Latest Posts