Sterling Resources files dispute notice with Romania, looks at international arbitration

Canadian oil and gas company Sterling Resources Ltd. has filed a notice of dispute with the Romanian state, based on the agreement between Romania and Canada for the promotion and reciprocal protection of investments, according to a company announcement. The notice was filed on June 20, “as a result of deliberate and discriminatory actions taken against the company's investments on its Midia and Pelican Blocks in the Black Sea”. Sterling Resources says that “an intense media campaign was initiated by Romanian public officials in the Romanian press, including prejudicial and unfounded speculation regarding the legality of the concession agreement”, and that there were also “unfair and biased enquiries conducted by the Investigation Commission of the House of Deputies and by other Romanian State bodies”. The next action that may be used is initiating the international arbitration proceedings under the agreement between Romania and Canada, according to the company. “If Sterling is unable to obtain satisfactory resolution on all the issues within this period, the company can then submit the matter to arbitration, if it so desires. Under the arbitration process, Sterling would claim monetary damages that reflect the entire and significant ultimate value of its offshore assets”, according to the company’s announcement. In April this year, the Canadian oil and gas company Sterling Resources has declared Force Majeure on its Midia and Pelican Blocks in the Black Sea in Romania, after the company has been unable to undertake petroleum operations due to construction permitting issues. Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands. Irina Popescu, irina.popescu@romania-insider.com