Singapore-based independent Jadestone Energy and Inpex subsidiary Teikoku Oil of Japan have settled their legal dispute regarding the Block 05-01 production sharing contract off Vietnam.
Jadestone in August 2016 signed a definitive sale and purchase agreement to acquire for a total cash consideration of US$14.3 million a 30% working interest in the offshore block from Teikoku.
In February 2018, the Japanese company informed Jadestone it was terminating the deal, despite national player PetroVietnam waiving its pre-emption rights to the acquisition — a decision that the buyer did not accept.
Following protracted negotiations, Jadestone in July this year moved to arbitration with the Singapore International Arbitration Centre — the SPA being subject to English law.
Teikoku and Jadestone have now agreed a full and final settlement, terms of which are being kept under wraps.
When considering the amount payable under the settlement, together with fees payable, Jadestone will not experience a significant increase in its cash position, the company confirmed on Wednesday.
Just four months ago, Jadestone chief executive Paul Blakeley had said: “We intend to complete our planned acquisition of a 30% interest in Block 05-1 from Inpex... the parties had worked together and made very substantial progress toward closing the deal.”