Dommo Energia S.A, Société Enauta Energia S.A., Barra Energia Do Brazil Petroleo e Gas Ltda - Cour d'appel de Paris - 19/15816 - French - 25 February 2020
Cour d'appel de Paris, Pôle 5 - chambre 16, 25 février 2020, no 19/15816 - Decision referred to the Court: No UN173772 arbitral awards made in Paris 21 February 2018 ('Interim Award') and 14 January 2019 ('Award terminating the 21st february 2018 Interim Award') under the auspices of the London Court of International Arbitration [LCIA] composed Mr. A B referee Chairman and Messrs X and C D E Y co-arbitrators.
Rio de Janeiro, October 23rd, 2017 - Dommo Energia S.A. informs the shareholders and market that, due to (i) the refusal from Barra Energia do Brasil Petróleo e Gás Ltda. ("Barra") to withdraw the illegal Notice, object of the Material Fact disclosed by the Company on October 20th, 2017, (ii) Barra's representatives negligence to the Company's attempts to find a solution, and (iii) default regarding fulfilment of contractual and regulatory commitments by Queiroz Galvão Exploração e Produção S.A. ("QGEP" or "Operator") in order to begin the production in BS-4 Block, Dommo Energia notified Barra and QGEP requiring immediate establishment of an arbitration procedure against both companies, filed at London Court of International Arbitration - LCIA, pursuant to UNCITRAL arbitration rules. Brazilian law is applicable for this dispute.
Rio de Janeiro, September 26th, 2018 - Dommo Energia S.A. announces to its shareholders and the market in general that it received yesterday the arbitration award issued by the Arbitration Court ("Decision") in respect to the first phase of the arbitration proceeding managed by the London Court of International Arbitration - LCIA, established by Dommo Energia against Queiroz Galvão Exploração e Produção S.A. ("QGEP") and Barra Energia do Brasil Petróleo e Gás Ltda. ("Barra"), according to material fact disclosed on October 23rd, 2017.
The Decision states, among others, that the notification issued by Barra on October 10th, 2017, in order to exercise, without offer of payment, the option to demand the Company's exclusion from the Joint Operating Agreement - JOA, the Consortium agreement and the Concession agreement, all related to the BS-4 Block - as disclosed in the material fact on October 20th, 2017 -, was valid at the time it was issued, and effective from the date of its receipt by the Company, on October 11th, 2017, without prejudice to the possible annulment of this exclusion in a subsequent step of the arbitration proceeding, based on analysis of evidence that could support such an annulment. The first phase of the arbitration did not include the analysis of evidence, having the Decision foreseen that, in any additional phase(s) of the arbitration, through the fact-finding exercise, Dommo Energia may still seek to annul the exclusion and the transfer of its stake in BS-4 Block and argue for an indemnity for losses and damages against QGEP and Barra.
The Decision is subject to eventual clarification requests from the interested parties, which may change its content.
The Decision's effectiveness and, consequently, its enforceability in national territory are subject to the foreign sentence approval procedures, managed by the Brazilian Superior Court (Superior Tribunal de Justiça - STJ), pursuant to the terms of the Brazilian Federal Constitution and the applicable legislation.