The International Court operating under the International Chamber of Commerce (ICC) in Paris has ruled in favour of Albania in a long-standing dispute with Chinese-owned oil company Bankers Petroleum concerning taxation and contract terms for the Patos-Marinza oil field, Albanian state-owned oil company Albpetrol said on Thursday.
The court has rejected Bankers Petroleum’s claims totalling over $236 million (220.3 million euro) in costs contested by Albania’s Agency for Natural Resources, Albpetrol said in a social media post. Bankers Petroleum is now obligated to reimburse these costs to the Albanian government.
Bankers Petroleum sought to retain all proceeds generated from the production of crude oil at Patos Marinza, among other claims.
Bankers Petroleum referred the dispute to arbitration in 2013, local media reported at the time. Its claims were related to income tax rates, retroactive taxes, the timing of tax obligations, reimbursement of operation and investment costs, as well as allocation of profits and royalties under a production-sharing agreement signed in 2004.
According to Bankers Petroleum’s website, the company has invested $3.5 billion in the Patos Marinza oil field. It has paid $587 million in royalties to the Albanian government. Bankers Petroleum generates all of its oil revenue in Albania.
