Arbitration against Sinopec
LUKOIL COMMENCES ARBITRATION AGAINST SINOPEC
On 15 April 2014 OAO LUKOIL announced it had signed a sale and purchase agreement for the sale to China’s Sinopec of a 50-percent stake in Caspian Investment Resources Ltd, a company with various stakes in four hydrocarbon-production projects in Kazakhstan. The total sale price was around USD 1.2 billion.
Sinopec has refused to complete the transaction, and LUKOIL contends this is in breach of contract.
LUKOIL has today commenced arbitration proceedings in London against Sinopec for substantial damages.