The International Court of Arbitration Chamber of Commerce has dismissed Petrotrans’ claim that the Ministry of Mines, Petroleum and Natural Gas (MoMPNG) unlawfully revoked the exploration and development contracts it signed in 2011.
The Geneva Tribunal totally decided in favor of Ethiopia by rejecting Petronas’ claim to be reinstated or awarded compensation of 1.4 billion US dollars.
Briefing journalists here yesterday, Minister of Mines, Petroleum and Natural Gas, Tolosa Shagi, said the verdict is a lesson for those companies who don’t operate in accordance with the terms of their contract.
Tolosa said the decision of the Court also shows how much the country’s mining laws and agreements are up to the international standard and the action taken against Petrotrans is appropriate.
He also added that the ruling gives clear picture to those companies which want to work with us in the future not to miscalculate.
The Ministry of Mines, Petroleum and Natural Gas and Petrotrans signed the agreement in July 2011 that enables the latter to explore and develop petroleum and natural gas in five blocks in the eastern part of the country.
According to Tolosa, the agreement was revoked by the Ethiopian government after the company failed to carry out its contractual obligation, including within an extended period of time, and after repeated warnings.