LONDON, March 6 (Reuters) - BP is seeking an award of at least $3.7 billion from its arbitration win against Venture Global in a case concerning liquefied natural gas cargoes, according to Venture
BP seeks at least $3.7 billion from Venture Global arbitration, filing says
BP's Arbitration Case Against Venture Global
Overview of the Arbitration and Claims
LONDON, March 6 (Reuters) - BP is seeking at least $3.7 billion from its arbitration win against Venture Global in a case concerning liquefied natural gas (LNG) cargoes, Venture Global's annual report shows.
The remedies sought by BP include damages ranging from $3.7 billion to potentially in excess of $6.0 billion, as well as interest, costs and attorneys' fees, said the report, which was released this week.
BP declined to comment, while a Venture Global spokesperson said the British oil major's requested damages are "unserious and not supported by evidence or controlling law".
Background and Industry Context
Major LNG Dispute Participants
BP, Shell, Unipec, Edison, Galp, Repsol and Orlen all took Venture Global to arbitration in one of the biggest disputes in the history of the LNG industry.
Details of the Arbitration Ruling
In October, BP won its case over Venture Global's failure to deliver LNG under a long-term contract that was due to start in late 2022.
The International Chamber of Commerce (ICC) International Court of Arbitration found that Venture Global breached its obligations to declare commercial operations had begun at the Calcasieu Pass plant in a timely manner and act as a "reasonable and prudent operator," Venture Global said in a regulatory filing at the time.
Financial Implications and Future Outlook
Expected Damages and Timeline
Venture Global CEO Mike Sabel said this week that BP's award for damages is expected in 2027 but did not elaborate on the figure.
Venture Global previously said after losing the case that BP was seeking damages of more than $1 billion, but a new hearing was required to determine the amount.
BP's Strategic Response
BP in February suspended its share buybacks to prioritise investing in oil and gas projects and shrinking its net debt to $14 billion–$18 billion by 2027 from $22 billion.
Other Arbitration Outcomes
Venture Global's Arbitration Record
Venture Global, the second largest LNG exporter in the U.S., has won two out of the three arbitrations brought against it.
It prevailed in an arbitration brought against it by Shell and won a subsequent court challenge from Shell over the arbitration award.
Reporting and Editing
(Reporting by Stephanie Kelly; editing by Toby Chopra and Jason Neely)
