• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 4 hours WTI @ $75.75, headed for $64 - 67
  • 2 hours The Dirt on Clean Electric Cars
  • 16 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 9 hours Uber IPO Proposals Value Company at $120 Billion
  • 2 hours Trump vs. MbS
  • 7 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 16 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 13 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 10 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 3 hours Coal remains a major source of power in Europe.
  • 3 hours EU to Splash Billions on Battery Factories
  • 12 hours Nopec Sherman act legislation
  • 5 hours Poland signs 20-year deal on U.S. LNG supplies
Alt Text

Are Energy Majors Under Threat From Big Tech?

Audi and Amazon have teamed…

Alt Text

Oil Prices Rise On Iran, Hurricane Outages

Oil prices recovered on Tuesday,…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Trending Discussions

BG Wins Multi-Million-Dollar Claim over Argentina

BG Wins Multi-Million-Dollar Claim over Argentina

British-based gas giant BG Group Plc has won a multi-million-dollar ruling against Argentina in a landmark case in the US Supreme Court.  

In a long-running case against Argentina for losses occurred during a 2002 gas-price freeze, the US Supreme Court ruled on Wednesday that the Argentine government must pay BG Group $185 million in compensation.

Amid an economic crisis in 2001-2002, Argentina moved to freeze gas prices and change the basis of gas prices from US dollars to pesos, causing the bankruptcy of then-BG-controlled Metrogas.

Related Article: Repsol to Settle for $5bn over Argentina Oil Asset Heist

The British company had said the Argentine government’s move to freeze gas prices shortly after it announced a sovereign debt default of some $100 billion in December 2001 caused a sharp drop in the value of BG’s 45% stake in Metrogas, bankrupting the company.

In 2012, BG sold its stake in Metrogas to YPF SA and Integra Gas Distribution LLC.

The victory has been a long one in coming for BG. In 2007, a US tribunal back at least part of BG’s loss claims, while a federal district court confirmed the $185-million award. However, the Washington, DC Federal Appeals Court later overruled the district court—arguing that BG should have first pursued its claims in Argentina.  

Wednesday’s Supreme Court ruling reinstated the $185 million award, in a 7-2 vote, arguing that the federal appeals court was wrong to throw out the arbitration award.

The ruling sets an unclear precedent for the future, as it essentially argues that BG’s contract with Argentina should be read as though it were a domestic US contract. 

Related Article: Latin America Energy Advisory – 7th February 2014

The victory for BG in the Argentina case comes as the company is experiencing disappointing results largely due to the ongoing crisis in Egypt.

BG Group has warned that production this year and next would fall short of expectations, calling its guidance for 2014 disappointing due to ongoing problems in Egypt.

In late January, BG Group said it was unable to fully meet its obligations to deliver gas to Egyptian LNG, and “given the current levels of domestic diversions and the continued uncertainty around the level of future diversions, the company has served force majeure notices to buyers and lenders.”

By James Burgess of Oilprice.com


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News