Oil pricing dispute talks ends in deadlock
View(s):High-level talks to settle the pricing dispute between the Ceylon Petroleum Corporation (CPC) and Fujairah Petroleum Co. in the supply of low sulphur fuel oil have ended in a deadlock with both parties now moving towards litigation, Fujairah company sources said.
The intervention of a former South African oil trader to settle a pricing dispute between the CPC and Fujairah failed to resolve the over pricing issue where the former has been billed twice the original fuel cost for six different shipments.
According to informed sources, Michael Hacking, Chief Operating Officer of Mocoh, a Swiss-based oil distribution, logistics and trading company acting on behalf of the UAE supplier, has refused to agree to any refund during his talks with CPC officials. The Gulf firm has filed action in the Commercial High Courts in Colombo and sought arbitration before a tribunal in Singapore Minister of Petroleum Resources Susil Premajayantha told the Business Times that the Commercial High Court has issued an enjoining order restraining any ‘extra’ payment to Fujairah following a petition filed by the CPC. The arbitration panel in Singapore has rejected the petition filed by Fujairah Petroleum, he said.
But Patsy Shannon Communication Director of the company in an email said, “The arbitration is continuing in Singapore”. The lawyers of Fujairah Petroleum said that they have filed papers before the Commercial High Court seeking to vacate the enjoining order and case will be heard tomorrow.
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