Petronas files for arbitrtion to settle dispute with Sudan on asset seizure
7 October 2021
By Priya Vasu and Anis Hazim
Petronas has filed a request for arbitration at the International Centre for Settlement of Dispute (ICSID) in the absence of any positive development on
Sudan’s transitional government’s decision to confiscate the company’s assets in Khartoum, Sudan.
Malaysia’s national oil company (NOC), in an email response shared to The Malaysian Reserve today, stated the rights over the land and the PETRONAS Complex in Khartoum, Sudan were obtained in accordance with applicable laws.
“Petronas has been jointly working with the Ministry of Foreign Affairs Malaysia to exercise all diplomatic channels with the authorities in Sudan to amicably resolve the issue.
“As there has been no positive development thus far, PETRONAS has filed a request for arbitration at the International Centre for Settlement of Dispute (ICSID) on the matter,’ Petronas noted.
It added that as the legal process has commenced,the group is unable to provide further information on this matter.
On Oct 5, Daily Sabah, an Istanbul based online portal, quoting sources, reported that the Sudanese government is seeking to confiscate assets belonging to Malaysia’s NOC, alleging the assets were acquired through illegal means during the rule of ousted leader Omar al-Bashir.
The report stated the Petronas Sudan Complex (PSC) land was acquired and registered under Nada Properties Co. Ltd. (NPCL), a subsidiary of Petronas in Sudan.
“However, the sources underlined that Sudan transferred the ownership of NPCL to Sudan’s Ministry of Finance and “deprived Petronas of its rightful ownership of the company,” the report said.
Petronas previously has objected to the expropriation of its property and criticized the allegations made by the committee.
Petronas stated NPCL is a locally registered company under the Sudanese Companies Law in its appeal to the government, which is still ongoing.
The transitional government formed the Empowerment Removal, Anti-Corruption and Money Retrieving Committee (ERC), tasked with reviewing agreements and retrieving assets that were allegedly acquired through illegal means during the previous administration.
Source: The Malaysian Reserve