Taipan Resources has announced that the Company’s Kenya based subsidiary Lion Petroleum Corp has commenced an arbitration action against East African Exploration (Kenya) Limited (EAX), a wholly owned subsidiary of Afren Plc.<\/p>\n
This follows certain breaches to the Joint Operating Agreement (JOA) signed between EAX and Lion in respect of Block 1.<\/p>\n
This Request for Arbitration is filed on behalf of Lion in accordance with Article 4 of the Rules of Arbitration of the International Chamber of Commerce (the ICC Rules).<\/p>\n
In its Notice of Arbitration, Taipan claims that among other things, EAX, as Operator in Block 1, failed to (1) diligently pursue joint operations or meet minimum work obligations; (2) follow good and prudent petroleum industry practices followed by international petroleum industry operators under similar circumstances; (3) follow agreed contract award procedures; and (4) follow agreed accounting procedures.<\/p>\n
Taipan is seeking not less than US$10 million as restitution for the damages it has suffered as a result of EAX’s breaches of contract.<\/p>\n
Taipan (through “Lion”) holds a 20-per-cent working interest in Block 1 (5,497,000 acres\/22,246 square kilometres) while EAX holds the remaining 80%. EAX has a two-well commitment in the current exploration period in Block 1 ending\u00a0October 8, 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"