The arbitration has been filed as Taipan claims that East African Exploration had made some breaches to the joint operating agreement (JOA), which was signed with Lion for the Block 1 oil field license onshore Kenya.
Filed on behalf of Lion Petroleum, the request for arbitration filed is in accordance with Article 4 of the Rules of Arbitration of the International Chamber of Commerce.
Taipan claims that EAX, which is the operator of Block 1 with 80% interest, had failed to thoroughly pursue joint operations or meet minimum work obligations as well as did not follow prudent petroleum industry practices followed by international petroleum industry operators under similar circumstances.
Additional claims included failure to follow agreed contract award procedures and agreed accounting procedures.
As restitution for its damages, Taipan is seeking at least $10m from EAX as a result of contract breaches.
The 5,497,000-acre Block 1 is 20% owned by Taipan, an independent Africa-focused oil exploration company.
