Arbitration Rules Against CBM Asia in Kutai II Block

JAKARTA (Yosefardi) – The International Chamber of Commerce (ICC) has ruled against CBM Asia Development’s claim on the Kutai II CBM production sharing contract, East Kalimantan.
The TSX Venture-listed company entered into a partnership with PT Ephindo for initial study of Kutai II block with potential participating interest of 40%.
In early 2011, however, CBM Asia received a notice from Ephindo claiming CBM Asia was in default to post a US$1 million study bond in connection with the preparation of a joint evaluation report with the government of Indonesia for the Kutai II Block.
CBM Asia then commenced arbitration proceedings in Singapore to secure its interest in any future PSC granted for the Kutai II Block. In November 2012, the proceedings took place and CBM Asia informed investors Friday (Sept 13) that the ICC has ruled against its claim.