ISLAMABAD: Petrosin CNG has initiated international commercial arbitration against Mari Energies Limited before the International Chamber of Commerce (ICC), seeking $19.1 million in damages, arbitration costs and other relief over the termination of a gas supply agreement, according to official documents.
Petrosin contends that Mari Energies unlawfully terminated the Gas Sale and Purchase Agreement (GSPA) for gas supplies from the Halini Production Field, causing substantial commercial losses. The dispute will be heard under the ICC Rules of Arbitration, with the seat of arbitration in London, as provided under the agreement.
The company maintains the agreement was to remain effective for so long as gas remained available from the field, provided that the buyer was not in breach of its obligations under the GSPA.
Responding to queries, a Mari Energies spokesperson rejected Petrosin’s allegations, maintaining that the GSPA was terminated in accordance
with its terms because Petrosin did not hold a valid licence, a contractual requirement, at the time of termination.
The spokesperson said Pakistani courts had consistently upheld Mari Energies’ position and no adverse order was currently in the field. Describing the arbitration proceedings as confidential, Mari Energies said it had full faith in the arbitral process and was confident its position would also be upheld before the ICC tribunal.
