Fortuna Resources (Sunda) Ltd. unit of Talisman Energy Inc., the Canadian oil company spun off from BP Plc, is suing China's Cnooc Ltd. over a stake in a $5 billion liquefied natural gas venture in Indonesia for failing to offer a participating share in both Tangguh and onshore exploration rights acquired by Cnooc in mid-December 2006 for the Batanghari Block, or area, in central Sumatra.
Because:
1. In 1968 Warrior International Corp. entered into an agreement with Independent Indonesian American Petroleum Co. and Carver Dodge International Co., according to which if a partner acquires any exploration interests in Indonesia, it must offer the other parties a participating share.
2. Warrior International merged in 1984 with Warrior Oil Co., which was acquired by Paladin Resources Plc in 1999. In 2005, Paladin Resources was bought by Talisman for 1.27 billion pounds ($2.5 billion). Paladin Resources (Sunda) Ltd. then changed its name to Fortuna Resources (Sunda) Ltd.
3. Independent Indonesian American Petroleum's interest in the agreement was acquired by YPF Maxus Southeast Sumatra BV, a unit of Spain's Repsol YPF SA, according to the document. In January 2002, Cnooc paid $585 million to Repsol YPF SA, Spain's biggest oil company, for oil and gas fields in Indonesia.
4. Rights under a contract may pass from one company to another in a merger
Revenue can be lost or found in the fine print.
[Click here for full story at: BLOOMBERG.COM]
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