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.
It also gives IPG the ability to collect those dues from Eritrea’s assets worldwide, the statement said.
Furthermore, the Company would like to reassure its shareholders that its financial position is solid as the total shareholders’ Equity, on 30/6/2009, equals up to KD 57.5 million and book value about 378 Fils per share and that the company is conducting its business normally, and meeting all its obligations and liabilities to its clients and banks on time and without any delay.
Moreover, the Company will not revalue its assets, determined by the International Consultant to be around KD 80.3 million, at 551 Fils per share (the numbers announced at Kuwait Stock Exchange on May 14.) In addition, the Company would like to confirm to its shareholders that it is confident it will implement the decision taken by the General Assembly held on February 22, that the Company will distribute cash dividends corresponding to 30 Fils per share or 60 percent of the net profits for the year 2009 whichever is higher, the statement said.
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.
Eretria and PCE have acknowledged the whole debt and attributed the delay in payment to the global financial crisis. IPG provides PCE with petroleum products since over 11 years.
IPG filed for arbitration to keep its rights and obligate the previously mentioned parties to pay the required sum immediately and allow IPG to collect it from their assets worldwide.
The Kuwaiti firm confirmed its strong financial position. Shareholders’ equity neared KD 57.5 million as on June 30, 2009. The stock’s book value reached 378 fils.
The company noted that all business activities are running smoothly, underlining its ability to fulfill duly all obligations to clients and banks.