http://www.theaustralian.com.au/business/mining-energy/cooper-ene...

http://www.theaustralian.com.au/business/mining-energy/cooper-energy-caught-in-tunisian-well-costs-dispute/story-e6frg9df-1226798530119#

A ROMANIAN oil and gas drilling contractor is taking legal action against Australian-listed Cooper Energy over what it says is an unpaid $US3.5 million ($3.9m) debt related to the Hammamet West-3 well off Tunisia.

There were serious delays and cost overruns when the well was drilled between March and November last year, and the project partners appear to have fallen out with drilling contractor GSP Offshore over who should pay the extra costs.

"GSP has been contracted by Cooper Energy for drilling operations offshore Tunisia and has delivered according to the contract," a spokesman for GSP said.

"We have decided to file a lawsuit against Cooper Energy at the London Court following a lack of response of the Australian company over the payment of $US3.5m outstanding amount from this contract."

The disputed well was expected to cost $US30m but the total blew out to $US85m as a result of challenging drilling conditions and problems with the rig.

Cooper holds a 30 per cent interest in and is operator of the Hammamet West permit, with Dubai-based Dragon Oil and ASX-listed junior Jacka Resources holding 55 per cent and 15 per cent respectively.

Dragon had agreed to pay 75 per cent of the well costs and Jacka 30 per cent to earn their shares of the project.

Cooper managing director David Maxwell said such disputes were not unusual in the oil and gas industry, and said it was normal for companies to object to paying for services and equipment that were not delivered as agreed.

"That project had its challenges. The rig did not perform as well as was required under the contract, and there were a number of deficiencies," he said.