Primeline Energy Initiates Arbitration Proceeding Against CNOOC Over East China Sea Gas Field Dispute

Primeline Energy Holdings said it has informed CNOOC Group about commencement of arbitration proceedings under the provisions of the Petroleum Contract for Block 25/34 in East China Sea.

Primeline has sent a letter to China National Offshore Oil Corporation (CNOOC) and CNOOC China Limited (CCL), part of CNOOC Group, giving formal notice of its intention to commence arbitration proceedings.

The arbitration relates to Primeline’s continuing disputes with CNOOC Group with regard to the development, production and sales of gas from the LS36-1 gas field. Primeline has appointed an arbitrator and will file the formal Notice of Arbitration in accordance with the UNCITRAL Arbitration Rules 1976 and the arbitration agreement under the Petroleum Contract for Block 25/34.

The CNOOC arbitration is separate from the previously announced China International Economic and Trade Arbitration Commission (CIETAC' arbitration proceedings by Primeline against Zhejiang Gas Natural Gas Development Company in respect of claims for payment of unpaid and partially paid gas sale invoices.