KUWAIT CITY, Sept 13, (KUNA): The Independent Petroleum Group (IPG) said on Sunday it is resorting to the Court of Arbitration in London (governed by the Rules of Conciliation and Arbitration of the International Chamber of Commerce -ICC Rules), to obtain an arbitration award confirming that Eritrea and the Petroleum Corporation of Eritrea — PCE (the National Petroleum Company totally owned by the State of Eritrea) should immediately pay IPG the value of delivered petroleum products of around KD 19 million.
The IPG stated that both Petroleum Corporation of Eritrea (PCE) and the State of Eritrea acknowledge the debt but apologize for the delay in payment due to the international financial crisis. The IPG has been supplying petroleum products to the Petroleum Corporation of Eritrea (PCE) for more than 11 years, the statement added.
Despite the confirmations that IPG received from the highest governmental authorities in Eritrea pertaining to the payment of the due amounts, Independent Petroleum Group has decided to submit to arbitration while being sure that these amounts will be entirely collected through the aforementioned arbitration. The decision of the Company in obtaining an arbitration award through the Court of Arbitration in London (Our lawyers in England are confident that the award would be in our favor due to the fact that the Petroleum Corporation of Eritrea (PCE) and the State of Eritrea, both acknowledge the full amount of the debt and do not object it) aims to preserve our rights and force both Petroleum Corporation of Eritrea (PCE) and the State of Eritrea to immediately pay the due amounts, it noted.
The following statement was posted in KSE website by International Petroleum Group Company (IPG) reported is planning to resort to the London Court of International Arbitration (LCIA), governed by the rules of the International Chamber of Commerce (ICC).
IPG aims to obtain an award obligating Eretria and the stated-owned Petroleum Corporation of Eritrea (PCE) to pay immediately around KD 19 million in return for delivered oil products.