Mubadala issues notice of default to NGP

Tap Oil Ltd. has announced that operator Mubadala Petroleum gave notice to Northern Gulf Petroleum Pte. Ltd. that it is in default under the terms of the G1/48 Joint Operating Agreement, which covers the Manora oil development offshore Thailand.

Mar 23rd, 2015

Offshore staff

SYDNEY, AustraliaTap Oil Ltd. has announced that operator Mubadala Petroleum gave notice to Northern Gulf Petroleum Pte. Ltd. (NGP) that it is in default under the terms of the G1/48 Joint Operating Agreement, which covers the Manora oil development offshore Thailand.

NGP holds a 10% interest in the G1/48 concession and the Manora oil development. The concession partners say that NGP has failed to pay its 10% participating interest share of joint account expenses as set out in cash calls. The notice specifies a total sum in default of $27,079,863.37.

NGP and its Bermudan parent company, Northern Gulf Petroleum Holdings Ltd. (NGPH) are controlled by Chatchai Yenbamroong.

The G1/48 Joint Operating Agreement prescribes various remedies in respect of a default while it is outstanding. According to Tap Oil, the joint operating agreement stipulates that after five business days, NGP loses its entitlement to attend and vote at operating committee meetings and to access any data or information relating to petroleum operations. After 30 days, proceeds from the sale of NGP’s share of Manora crude oil are directed to the non-defaulting parties who have contributed to the default amount to be applied against such contributions. After 60 days occurs the compulsory transfer of NGP’s 10% interest to the non-defaulting parties who have contributed to the default amount.

The Manora A platform is located within the Gulf of Thailand in 46 m (151 ft) of water. The program calls for drilling and completing 15 wells (10 producers and five injectors), with final preparations ending in 1Q 2015.

Mubadala Petroleum holds a 60% stake in the development; Tap Oil holds 30%; and Northern Gulf Petroleum currently holds the remaining 10%.

03/23/2015

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