Repsol Oil & Gas Can Repsol Announces the Filing of an Arbitration Statement of Claim in Relation to Its Assets in the UK
June 20 2016 - 1:00AM
UK Regulatory
TIDMAN26
FOR: REPSOL OIL & GAS CANADA INC.
June 17, 2016
Repsol Announces the Filing of an Arbitration Statement of Claim
in Relation to Its Assets in the UK
Repsol Oil & Gas Canada Inc. (formerly Talisman Energy
Inc.), advises of a notice issued on June 17, 2016, reproduced
below
MADRID, SPAIN--(June 17, 2016) - As provided for by section 228
of the Securities Market Act, to complement the information already
disclosed by Talisman and Repsol in their financial statements from
the first semester 2015 onwards, both companies inform:
Addax Petroleum UK Limited and Sinopec International Petroleum
Exploration and Production Corporation (both companies ultimately
owned by the Chinese Government) have initiated arbitration
proceedings against Talisman Energy Inc. (currently Repsol Oil
& Gas Canada Inc.) and Talisman Colombia Holdco Limited. In
those proceedings Addax and Sinopec seek repayment of their initial
investment in TSEUK, which was executed in 2012 through the
purchase of 49% of TSEUK from the Canadian group Talisman, together
with any additional investment, past or future, in such company,
and further for any loss of opportunity, and which they estimate in
a total approximate amount of 5,500 million US$. However, at the
same time, Addax intends to maintain its current stake in
TSEUK.
The claim, which has been periodically disclosed, is considered
by Talisman and Repsol to be baseless and therefore it is currently
assessed by them, as well as by their external legal counsel, as
Remote Risk.
The claimants' proceedings can be interpreted as a defensive
action undertaken by those who adopted an investment decision in
the United Kingdom which has not delivered the results expected by
them -as it has also happened with other investments by this group
of companies-.
In addition, the arbitration claim is groundless and is
inconsistent with the loyalty to be expected from a business
partner. The claims have commenced almost three years after Addax
acquired a stake in TSEUK, even though Addax has participated at a
management level and in all decisions adopted by TSEUK since then,
without expressing any worries or concerns. Addax's has chosen to
commence legal proceedings trying to gain an illegitimate advantage
in its own benefit instead of devoting all efforts to improving
TSEUK's performance, as it has occurred in the past months -since
Repsol's entry into the Joint Venture-, something that might
explain its desire to remain as a shareholder in TSEUK.
Talisman and Repsol, while vigorously defending their rights in
relation to any adverse consequences that may be caused to them or
to their affiliate TSEUK by Addax and Sinopec's actions, hope that
such group will rectify and devote all efforts to the best
management of their affiliates in Brazil and the United
Kingdom.
Forward-Looking Information
This disclosure contains information that constitutes
"forward-looking information" or "forward-looking statements"
(collectively "forward-looking information") within the meaning of
applicable securities legislation. The use of the words "expected",
"considered", "might" and similar expressions are intended to
identify forward looking information. Forward-looking information
includes, among others, statements regarding the potential results
of the arbitration process, and other expectations, beliefs, and
statements about possible future events.
The factors or assumptions on which the forward-looking
information is based on risks and uncertainties described in the
filings made by Repsol Oil & Gas Canada Inc. ("the Company")
with securities regulatory authorities. No assurance can be given
that these factors, expectations and assumptions will prove to be
correct. Undue reliance should not be placed on forward looking
information. Forward looking information is based on current
expectations, estimates and projections that involve a number of
risks which could cause actual results to vary and in some
instances to differ materially from those anticipated and described
in the forward looking information contained in this disclosure.
Additional information is available in the Company's other reports
on file with Canadian securities regulatory authorities and the
United States Securities and Exchange Commission. Forward looking
information is based on the estimates and opinions of management at
the time the information is presented. The Company assumes no
obligation to update forward looking information should
circumstances or management's estimates or opinions change, except
as required by law.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Repsol Oil & Gas Canada Inc.34 917 538 10034 917 538 00034
913 489 494 (FAX)www.repsol.com
INDUSTRY: Energy and Utilities-Oil and GasSUBJECT: STK
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160619005022/en/
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June 20, 2016 02:00 ET (06:00 GMT)
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