ANTANANARIVO, May 6 (Reuters) - Madagascar said on Friday it would contest an arbitration process launched this week by Madagascar Oil over oil blocks and that the London-listed firm owed the government $9 million.
Madagsacar Oil said on Wednesday it had started arbitration proceedings at the International Chamber of Commerce in a bid to prevent four of its oil blocks being acquired by the Indian Ocean island.
Minister for Mines and Hydrocarbons Mamy Ratovomalala told reporters the process launched by Madagascar Oil was not in line with the country's oil code, as a committee made up of the two parties should have tried to resolve the issue first.
'But we are ready to defend our interests before the Chamber,' he said.
Madagascar Oil had said on Wednesday it would aggressively pursue a meeting with the government to rectify the situation.
The company said last year it had expected first production from its key Tsimiroro field in 2011, and also said the government of Madagascar had indicated interest in acquiring all of its licences except its Bemolanga one.
The company declared force majeure last month following the government directive. Its shares are suspended.
The secretary general of Madagascar's Mines and Hydrocarbons Ministry, Jaona Randrianarisoa, also told Reuters on Friday that the government was seeking $9 million in unpaid value-added tax from the oil company.
(Reporting by Alain Iloniaina; Editing by David Clarke and Will Waterman) (For more Reuters Africa coverage and to have your say on the top issues, visit; http://af.reuters.com/) Keywords: MADAGASCAROIL/ (Email: nairobi.newsroom@reuters.com; Tel: +254 20 222 4717) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Madagsacar Oil said on Wednesday it had started arbitration proceedings at the International Chamber of Commerce in a bid to prevent four of its oil blocks being acquired by the Indian Ocean island.
Minister for Mines and Hydrocarbons Mamy Ratovomalala told reporters the process launched by Madagascar Oil was not in line with the country's oil code, as a committee made up of the two parties should have tried to resolve the issue first.
'But we are ready to defend our interests before the Chamber,' he said.
Madagascar Oil had said on Wednesday it would aggressively pursue a meeting with the government to rectify the situation.
The company said last year it had expected first production from its key Tsimiroro field in 2011, and also said the government of Madagascar had indicated interest in acquiring all of its licences except its Bemolanga one.
The company declared force majeure last month following the government directive. Its shares are suspended.
The secretary general of Madagascar's Mines and Hydrocarbons Ministry, Jaona Randrianarisoa, also told Reuters on Friday that the government was seeking $9 million in unpaid value-added tax from the oil company.
(Reporting by Alain Iloniaina; Editing by David Clarke and Will Waterman) (For more Reuters Africa coverage and to have your say on the top issues, visit; http://af.reuters.com/) Keywords: MADAGASCAROIL/ (Email: nairobi.newsroom@reuters.com; Tel: +254 20 222 4717) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2011 AFX News
