(Alliance News) - Range Resources Ltd on Wednesday said its legal advisors have submitted a notice of arbitration against Georgia over the wrongful termination of a production sharing contract.
Range is seeking damages of around USD21.9 million, plus interest of around USD1.7 million, for the termination of the production sharing contract over Block VIA in Georgia and the resultant losses suffered by Range and unlawful expropriation of its investment, it said.
Via its 65% shareholding in Strait Oil & Gas Ltd, Range holds an indirect interest in the production sharing contract and has been involved in the project since 2009. Range said it has invested "substantial capital" since then, which had been used to complete the minimum work programme required by the production sharing contract.
In 2017, the Georgian government announced an open international tender on Block VIA.
Range had previously alleged the tender, and a re-licensing of the block, would breach the terms of the production sharing contract and it sought legal advice, but no resolution has been agreed thus far.
At at June 2018, Range had fully written down the value of its investment in Block VIA and has no value attributed to its interest in the block on its balance sheet.
Shares in Range Resources have been suspended since March as it plans to announce a debt restructuring which will be classified as a reverse takeover.