HDR hardman resources limited

hardman sues woodside , page-2

  1. 633 Posts.
    re: hardman sues woodside - here it it... Hardman Resources Limited announces that its wholly owned subsidiary, Hardman
    Chinguetti Production Pty Ltd (together Hardman), today commenced proceedings in the
    Supreme Court of Western Australia with the aim of establishing Hardman’s entitlement to
    cost recovery under the relevant Area B production sharing contract.
    The issue involves the meaning according to law of the Joint Operating Agreement and
    Farmin Agreement for Area B. It has been the subject of considerable discussion and
    correspondence between Hardman and Woodside Mauritania Pty Ltd (Woodside), the
    Operator of the Area B Joint Venture, since late 2003. Hardman and Woodside have not
    been able to reach an agreed outcome despite both parties proposing different terms for
    resolution by arbitration.
    Hardman’s position is that the entitlement of all joint venture parties to recover costs should
    be calculated according to the participating interest share in the Joint Venture. Woodside
    asserts that it should be entitled to recover 100% of its share of the farmin costs for cost
    recovery purposes.
    Other Area B joint venture parties have indicated support for Hardman’s position. Hardman
    also has an opinion from a Queens Counsel which supports its position.
    Should the Court make the declarations sought, Hardman would receive approximately
    US$18 million in additional cost recovery and reimbursement payments than would
    otherwise apply under the Woodside position.
    The Supreme Court proceedings will not impact upon the development of the Chinguetti field
    which remains on schedule to produce first oil in the first quarter of 2006.

    Hardman’s Chief Executive Officer and Managing Director, Simon Potter, commented:-
    “This action by Hardman has been taken reluctantly to break a deadlock in the respective
    positions of Hardman and Woodside. The parties have essentially agreed to disagree and it is
    necessary to obtain an independent determination of the issues involved.
    This is a one-off situation and will not impact upon the good working relationship Hardman
    has enjoyed and will continue to enjoy with Woodside in several joint ventures in
    Mauritania.”
    SIMON POTTER
    CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR
    HARDMAN RESOURCES LIMITED
 
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