Frontera refuses to disclose the Arbitration Tribunal award and keeps spreading false information
07 May, 2020
Public statements made by Frontera Resources Georgia Corporation to distort the results of arbitration proceedings became more frequent after bringing out the final award of Arbitration Tribunal over the dispute between Georgian Oil and Gas Corporation and State Agency of Oil and Gas, following serving termination notice of the contract from Agency.
The Corporation and The Agency are expecting Frontera to increase the intensity of aforementioned statements and keep efforts to politicize the purely commercial dispute, which aims to exert unscrupulous pressure on Georgian side and mislead parties concerned.
In order to provide society with unbiased and objective information, the Agency and the Corporation offered Frontera to disclose the Arbitration award, which the company rejected.
The Arbitration award unambiguously defines appropriate obligations of Frontera including the return of the exploration area along with reimbursing relevant funds and it may not be the subject of discussion.
Despite Frontera’s strong efforts, the Arbitration Tribunal has fully shared the position of the Corporation and the Agency regarding Frontera’s statements over the discovery of volumes of oil and gas were unfounded and could not be substantiated. The Arbitration Tribunal also ruled that Frontera’s attempt to transfer the contract to its affiliated company (Frontera US) was illegal.
Contrary to Frontera’s statement the arbitration claims raised by GOGC and the Agency did not seek cancellation of the contract among the parties. Nor could it, since termination requires a declaration in arbitration of a material breach. The Arbitration Tribunal has unambiguously ruled the material breach of the contract by Frontera. As a result, the Agency has served termination notice upon Frontera based on the respective contractual provision .
The contract will be automatically terminated on July 27 2020 in relation to the entire contract area ..
Frontera is obliged to bring out the necessary steps in order to return the licensing block and rectify severe environmental conditions.
The Agency and the Corporation are no longer intending to continue controversy with Frontera, instead will follow the relevant procedures defined by the contract.
The Corporation and The Agency are expecting Frontera to increase the intensity of aforementioned statements and keep efforts to politicize the purely commercial dispute, which aims to exert unscrupulous pressure on Georgian side and mislead parties concerned.
In order to provide society with unbiased and objective information, the Agency and the Corporation offered Frontera to disclose the Arbitration award, which the company rejected.
The Arbitration award unambiguously defines appropriate obligations of Frontera including the return of the exploration area along with reimbursing relevant funds and it may not be the subject of discussion.
Despite Frontera’s strong efforts, the Arbitration Tribunal has fully shared the position of the Corporation and the Agency regarding Frontera’s statements over the discovery of volumes of oil and gas were unfounded and could not be substantiated. The Arbitration Tribunal also ruled that Frontera’s attempt to transfer the contract to its affiliated company (Frontera US) was illegal.
Contrary to Frontera’s statement the arbitration claims raised by GOGC and the Agency did not seek cancellation of the contract among the parties. Nor could it, since termination requires a declaration in arbitration of a material breach. The Arbitration Tribunal has unambiguously ruled the material breach of the contract by Frontera. As a result, the Agency has served termination notice upon Frontera based on the respective contractual provision .
The contract will be automatically terminated on July 27 2020 in relation to the entire contract area ..
Frontera is obliged to bring out the necessary steps in order to return the licensing block and rectify severe environmental conditions.
The Agency and the Corporation are no longer intending to continue controversy with Frontera, instead will follow the relevant procedures defined by the contract.