DUSHANBE (TCA) — France’s Total and China National Petroleum Corporation (CNPC) on May 19 filed for arbitration proceedings at the International Court of Arbitration against Kulob Petroleum Limited (KPL), Canada-based Tethys Petroleum Limited’s subsidiary in Tajikistan, Tethys said on June 20.
KPL is the contracting partner of Total and CNPC in the Bokhtar Production Sharing Contract for the development of the Bokhtar oil and gas field in southern Tajikistan.
Total and CNPC demand KPL meet its financial commitments or withdraw from the Bokhtar project.
“The filed arbitration request is in relation to the Notice of Dispute received by KPL on January 8, 2016, which is in connection to the previously announced Notice to Withdraw issued by Partners [Total and CNPC] on October 11, 2015, following the cash call default of September 2015. The Notice to Withdraw was rejected by KPL, which led to the Partners issuing a Notice of Dispute. Tethys has been actively engaged with the Partners to reach an amicable resolution,” Tethys said.
Tethys Petroleum is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. In 2012 the company said it had discovered huge oil and natural gas reserves in the Bokhtar field.
According to estimates, Bokhtar may contain 3.2 trillion cubic meters of gas and 8.5 billion barrels of oil, the Fergana information agency reported.
In July 2013, Tethys, Total and CNPC signed an agreement giving each party a third (33.33 percent) of participation in the Bokhtar Production Sharing Contract.