The PDL 10 licensees, on 9 November 2018 including global Spanish energy company Repsol operator, Kumul Petroleum, PNG national oil company, Horizon Oil and Osaka Gas, regarding the notices of intention to cancel Petroleum Development License 10, Pipeline License 10 and notice of termination of the Stanley Gas Agreement, met with Petroleum Minister Dr. Fabian Pok.
The Minister and the PDL 10 licensees were unable to reach a resolution that did not compromise the PDL 10 licensees’ existing legal rights, despite confidential negotiations continuing this week. Horizon Oil and Repsol have formed the view, that each of the Purported Notices is without merit, supported by independent legal advice.
Repsol and Horizon Oil issued to the State a notice of intention, on 15 November 2018, under the Stanley Gas Agreement to refer the disputes arising from the Purported Notices to arbitration as required under the Claims by and Against the State Act 1996. Following shortly will be a notice of arbitration. To cancel the licenses until the arbitration has completed, the notice will stay any action by the Minister or the Purported Notices are otherwise withdrawn. To stay the purported termination of the Stanley Gas Agreement, Horizon Oil and Repsol intend to take further action.
Together with the other PDL 10 licensees, Horizon Oil, to resolve the disputes affecting the good standing of PDL 10, PL 10 and the Stanley Gas Agreement, will continue to work with the Petroleum Minister and the Department of Petroleum and Energy.
The stock of Horizon Oil Limited (ASX: HZN) traded flat on November 15, 2018 at $0.120 and has witnessed a performance change of 37.93% over the period of 12 months. The market capitalization of the company currently stands at $156.24 million.
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