MENA Energy DMCC (MENA), headquartered in Dubai, UAE, has responded to its position on the oil trading dispute between it and Hascol Petroleum Ltd (HPL).
The dispute relates to the transactions for the sale of fuel oil and gasoil (diesel)by MENA to Hascol in Pakistan, for shipment in November/ December 2014, when there was a sharp decline in oil prices. Hascol defaulted on its performance obligations under the contracts.
In March, Hascol had responded to these rumors by having sent a notice to the Pakistan Stock Exchange (PSX) and said that no arbitration case was underway between it and MENA Energy, where HPL was ordered to make a payment amounting to $60m to the latter. HPL contended that it was pursuing a litigation case against Mena Energy DMCC before the High Court of Justice, Queens Bench, Commercial Court London. The decision for this case as said by HPL was expected to be concluded and announced by the end of January 2018.
But in a press release dated 30th of May 2017, MENA Energy DMCC said on 16 February 2017, the England and Wales High Court ruled that MENA Energy was entitled for damages from Hascol Petroleum concerning two shipments of fuel oil and one shipment of gas oil to Karachi in November 2014. Counterclaims bought forward by Hascol Petroleum had been dismissed. They also mentioned that despite the ruling of the England and Wales High Court of Justice, reports that there is no case underway between MENA Energy and Hascol Petroleum or that Hascol Petroleum is entitled for damages were false.
According to the press release, the England and Wales High Court will reconvene shortly to ascertain MENA’s damages claim which total $13-14m inclusive of legal and interest’s costs.
