Tap Oil Limited advises that on 20 March 2015 the Operator of the G1/48 Concession and the Manora Oil Development (Mubadala Petroleum) gave notice to Northern Gulf Petroleum Pte. Ltd. (NGP) that it is in default under the terms of the G1/48 Joint Operating Agreement.
NGP holds a 10% interest in the G1/48 Concession and the Manora Oil Development. NGP has failed to pay when due its 10% participating interest share of joint account expenses as set out in cash calls. The notice specifies a total sum in default of US$27,079,863.37. NGP, and its Bermudan parent company, Northern Gulf Petroleum Holdings Ltd (NGPH) are controlled by Mr Chatchai Yenbamroong.
The G1/48 Joint Operating Agreement prescribes various remedies in respect of a default while it is outstanding. In this circumstance, the remedies range from: