Asia-focused independent KrisEnergy and floater specialist Rubicon Offshore International have reached a key settlement in their protracted contractual dispute that will effectively save the former’s Thai subsidiary from being wound up.

As part of the deal, KrisEnergy will enter into a new bareboat charter for the Rubicon Vantage floating storage and offloading unit Rubicon Vantage, which was at the centre of the dispute that dated back to October 2014.

The FSO — which had been deployed on KrisEnergy’s Wassana oilfield off Thailand — will now be put into operation at its Apsara development off Cambodia, which is fast approaching production start-up.

KrisEnergy said that the novel bareboat charter agreement would be at market rates.

The settlement deed with an effective date of 24 November 2020, will see Rubicon immediately take steps to withdraw its winding up petition against KrisEnergy (Gulf of Thailand) Ltd (KEGOT) in the Cayman Islands.

Meanwhile, KrisEnergy and Rubicon will jointly apply to the High Court of Justice Business and Property Courts of England and Wales (English High Court) to discontinue the relevant proceedings there.

Still to be finally settled under the deed is the settlement sum — which is an aggregate of the total amount, including contingent claims — that could be owing from KrisEnergy to Rubicon.

KrisEnergy explained that Rubicon would file a Proof of Debt due for US$15.3 million in the scheme of arrangement that the oil and gas company has pursued in the High Court of Singapore.

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“The Rubicon parties agree that the filing of the Proof of Debt and any distribution shall constitute full and final settlement of the settlement sum,” KrisEnergy said.

“The Rubicon parties agree that, in the event that they (or each of them) fail to file a proof of debt including the Proof of Debt, any claims which they have against the KrisEnergy parties, including any claim for the settlement sum, will be forever waived, released, discharged and extinguished.”