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Mubadala warns NGP over G1/48 Concession default

23rd March 2015

Mubadala Petroleum, the operator of the G1/48 Concession and the Manora Oil Development, has given notice to Northern Gulf Petroleum Pte. Ltd. (NGP) that it is in default under the terms of the G1/48 Joint Operating Agreement

Mubadala Petroleum, the operator of the G1/48 Concession and the Manora Oil Development, has given notice to Northern Gulf Petroleum Pte. Ltd. (NGP) that it is in default under the terms of the G1/48 Joint Operating Agreement
NGP, and its Bermudan parent company, Northern Gulf Petroleum Holdings Ltd (NGPH) are controlled by Chatchai Yenbamroong

NGP holds a 10 per cent interest in the G1/48 Concession and the Manora Oil Development and has failed to pay when due its 10 per cent participating interest share of joint account expenses as set out in cash calls.

The notice specifies a total sum in default of USD 27,079,863.37.

NGP, and its Bermudan parent company, Northern Gulf Petroleum Holdings Ltd (NGPH) are controlled by Chatchai Yenbamroong.

The G1/48 Joint Operating Agreement prescribes various remedies in respect of a default while it is outstanding.

In this circumstance, the remedies range from:

  • after five business days, NGP losing its entitlement to attend and vote at Operating Committee meetings, and to access any data or information relating to Petroleum Operations;
  • after 30 days, proceeds from the sale of NGP’s share of Manora crude oil being directed to the non-defaulting parties who have contributed to the default amount to be applied against such contributions; and
  • after 60 days, compulsory transfer of NGP’s 10 per cent interest to the non-defaulting parties who have contributed to the default amount.
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