By Sami Zaptia.
London, 1 March 2021:
Libya’s state National Oil Corporation (NOC) announced yesterday that it had won a decision from the Paris Court of Appeal in relation to an arbitral award in an arbitration between NOC and the Libyan Emirates Oil Refining Company (LERCO) regarding the Ras Lanuf Refinery.
Reporting the details, the NOC said that on 23 February, 2021, the Paris Court of Appeal issued a decision in relation to the arbitral award that was issued on January 4, 2018 in an ICC arbitration between the Libyan Emirates Oil Refining Company (LERCO) and the NOC regarding the Ras Lanuf Refinery.
The NOC reported that the Paris Court’s decision confirmed LERCO’s obligation to pay it over US$115 million plus interest. With interest calculated up to February 28, 2021, the amount that LERCO must pay under that award is over US$132 million. The Court also upheld the arbitral tribunal’s decision confirming LERCO’s ongoing contractual take-or-pay obligation and ordered LERCO to pay 100,000 euros in costs of the Paris court proceeding.
Commenting on the case, NOC chairman Mustafa Sanalla stated that: “NOC is the trusted guardian of the Libyan oil wealth. It has not and will never hesitate to take the steps necessary to protect and preserve that wealth.”
The NOC said that it will take all necessary steps to enforce its rights under the award and the Court’s decision.