Georgia breaks agreement with us oil company
Georgia called on the company to voluntarily comply with the arbitration court's decision, including the payment of $ 6 million.
The state oil and gas Agency sent a notice to the American company Frontera Resources Corporation about the termination of the contract, the Agency said in a statement.
The reason for breaking the agreement was the decision of the international arbitration court in favor of Georgia, which was represented in the dispute by the state Agency and the oil and gas Corporation. The issue concerned the share distribution of the contract's output in oil production. The Georgian side made several demands, the main of which was the return of the territory that Frontera does not use for oil exploration and production. This territory makes up about 99% of the license block. The square was supposed to be returned in 2017.
"Based on the meaning of the arbitration award and other circumstances, the Agency sent a notice of termination of the contract to Frontera Resources Corporation. The contract will be automatically terminated at the end of the term specified in it-on July 27 this year, " the message reads.
In addition, the State oil and gas Agency called on the company to voluntarily comply with the decision of the arbitration court, including the payment of $ 6 million.
According to the court's decision, Frontera must pay the Corporation a fee for the use of natural resources, as well as legal costs.
Georgia won in the international arbitration court against an American company
Frontera Resources Corporation is an American company engaged in the exploration and production of gas and oil, was founded in 1996. The company's strategy is to search for prospects for hydrocarbon production in the markets of Eastern Europe, which belong to the black sea basin. The company currently operates in Georgia and Moldova.
Sputnik-georgia.ru
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Georgia breaks agreement with us oil company
Georgia called on the company to voluntarily comply with the arbitration court's decision, including the payment of $ 6 million.
The state oil and gas Agency sent a notice to the American company Frontera Resources Corporation about the termination of the contract, the Agency said in a statement.
The reason for breaking the agreement was the decision of the international arbitration court in favor of Georgia, which was represented in the dispute by the state Agency and the oil and gas Corporation. The issue concerned the share distribution of the contract's output in oil production. The Georgian side made several demands, the main of which was the return of the territory that Frontera does not use for oil exploration and production. This territory makes up about 99% of the license block. The square was supposed to be returned in 2017.
"Based on the meaning of the arbitration award and other circumstances, the Agency sent a notice of termination of the contract to Frontera Resources Corporation. The contract will be automatically terminated at the end of the term specified in it-on July 27 this year, " the message reads.
In addition, the State oil and gas Agency called on the company to voluntarily comply with the decision of the arbitration court, including the payment of $ 6 million.
According to the court's decision, Frontera must pay the Corporation a fee for the use of natural resources, as well as legal costs.
Georgia won in the international arbitration court against an American company
Frontera Resources Corporation is an American company engaged in the exploration and production of gas and oil, was founded in 1996. The company's strategy is to search for prospects for hydrocarbon production in the markets of Eastern Europe, which belong to the black sea basin. The company currently operates in Georgia and Moldova.
Sputnik-georgia.ru
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