Medco has asked the US arbitration panel to rule that Lapindo, which parent company Energi Mega Persada (EMP) is trying to sell off, breached the terms of its joint operating agreement for the Brantas block onshore Java where mud has been spewing from the ground since a well control incident on 29 May.
However, EMP said in a statement that Medco's lawsuit was based on a misunderstanding of a clause within the 1972 operating agreement.
