Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact firstname.lastname@example.org.
SOURCE RSM Production Corporation (RSM)
LONDON, December 16, 2013 /PRNewswire/ --
Mr Jack J. Grynberg, President and CEO of RSM Production Corporation (RSM), has won against Victoria Oil and Gas PLC (VOG) regarding VOG's asserted ownership of rights in the Logbaba Concession in Cameroon. On November 30, 2013 a unanimous International Chamber of Commerce (ICC) Arbitration Panel affirmed RSM's 40% interest in Logbaba.
He said today:
"This is a significant victory for RSM and vindicates our long held position. The Board of Victoria Oil and Gas has repeatedly made inaccurate and incomplete claims concerning the ownership of their major asset, which is a hydrocarbon concession in the Cameroon. As I have pointed out before, their claim that they owned a "95% working interest" in the Logbaba Concession was false and has resulted in protracted, expensive and unnecessary arbitration on account of Victoria Oil and Gas. This has now ended with a unanimous finding that RSM owns 40% of the Logbaba Project, along with certain other incidental rights. The arbitration also confirmed that RSM owns 100% of the Logbaba No. 101 and No. 103 wells and VOG has 0% in these two (2) bypassed natural gas condensate wells.
"As President and Chief Executive of RSM I have been involved in the Logbaba Concession since it was initially granted to RSM in May 2001. I intend to review all strategic decisions that have been made unilaterally by VOG without regard to RSM's rights in the project. Going forward, RSM will be actively involved in the management and operation of all commercial projects in respect of the Concession and I will continue to take such steps as are necessary to protect its interests."
RSM has written to VOG requiring an audit of its project management and requiring that it now pays to RSM its overriding royalty on gross production estimated by RSM to be $510,000.
Meanwhile, RSM's International Centre for Settlement of Investment Disputes (ICSID) case against the Republic of Cameroon is proceeding to arbitration. RSM's claim is for declaration, rescission and damages on the basis that VOG and Cameroon made unilateral detrimental concessions on gas price and licence area without the authority and agreement of RSM. The case was registered on 1 July 2013 and a first hearing is expected early in 2014.
Notes to Editors:
For further information please contact:
©2012 PR Newswire. All Rights Reserved.