Court of Arbitration orders to Frontera Resources to pay third of SOCAR's expenses for legal proceedings
The SOCAR has successfully cancelled the suit filed by Frontera Resources Corporation during the arbitration trial in Stockholm on PSA on Kursangi-Karabakhly onshore bloc, signed in 1998. The SOCAR said the arbitration proceedings were held in Stockholm in March 2005 and the sides have been recently informed of the results.
The document says that Frontera Resources Corporation claimed at approximately $22m, including the interests and compensation of legal expenses. Their claims were based on the right they as though hold for export of all oil produced from the field without observing their commitments under PSA to supply SOCAR oil for local market, the announcement says.
With a desperate attempt to cease such actions the Azerbaijani Customs Committee suspended the export operations by Frontera Resources Corporation in November 2000.
Though as a result of the arbitration proceedings the SOCAR was ordered to pay $1.2, (actual claims in thus aspect comprised $1.9m) for the share of Frontera Resources Corporation in this oil volumes, it is inconsiderable as compared to the amount of initial suit. It is notable that the court did not make a sentence on compensation of legal expenses linked with the suit, while ordered them to pay the third of SOCARs similar expenses, the document says.
Thus, $1.2m is liable to cut because of expenses stipulated for compensation to SOCAR. At any case, the SOCAR explores the opportunities for complaining of this part of the arbitration sentence. The SOCAR is considering the result as a full justification its positions, the announcement says.