UPDATE 4-Australia's Woodside lashes out at S.Korea's KOGAS over disputed LNG contract

From Reuters - February 13, 2018

MELBOURNE (Reuters) - Australias Woodside Petroleum on Wednesday lashed out at Korea Gas Corp (KOGAS) over a dispute it has with the South Korean company, saying KOGAS owes it money for an expired liquefied natural gas (LNG) contract from the North West Shelf Project.

Chief Executive Peter Coleman of Woodside Petroleum, operator of the NWS Project, said in an analyst call on Wednesday that North West Shelfs view is that KOGAS owes the North West Shelf money, not the other way around.

Reuters previously reported that state-run KOGAS, one of the worlds biggest importer of LNG, and the North West Shelf LNG export project were in arbitration over the pricing of a mid-term supply contract, after a KOGAS spokesman on Monday confirmed arbitration without further comment.

The KOGAS spokesman said on Wednesday the company has no further comment on the matter.

Woodsides Coleman said the arbitration, under which contract counterparts agree a neutral arbiter to resolve disputes outside formal legal courts, was over a supply deal that expired in 2016.

The LNG contract was for about eight cargoes a year over a couple of years, he said. Woodsides equity was one-sixth.

Its just about price ... every contract has this in it, that you renegotiate prices, Coleman said in a separate media call.

Its just a buyer is taking a view that we fundamentally disagree with ... and is inconsistent with the way other buyers have treated these price discussions, Coleman said.


Arbitration cases tend to be confidential, with neither party publishing details.


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