Translation provided by JIGGSLAW®. The contamination of an Angolan oil cargo agreed upon with the Cabinda Gulf Oil Company, a Chevron subsidiary in Africa, has prompted the Chilean state-owned National Oil Company (ENAP in Spanish) to initiate an international arbitration over losses estimated at nearly $2.5 million.
According to Chilean media reports, the oil cargo, which is the object of an agreement signed on March 2021, arrived contaminated with water. ENAP received assistance from an international consulting firm in ascertaining that the oil came from the Cabida oil wells. (See “Negocios de ENAP en África: estatal abre litigio al perder $2 mil millones en cargamento de crudo“, Nicolás Parra Tapia and Felipe Díaz Montero, 03.03.2023).
ENAP has filed a request with the Chilean Courts to establish an arbitration tribunal. The Chilean Supreme Court has listed a hearing with both parties for July 2022.
The Chilean claims that the purchased cargo does not meet the agreed-upon quality standards.
Cabinda Gulf Oil Company (Chevron)
Chevron has been present in Angola since 1930. It now has executive shares in two consortiums through its subsidiary Cabinda Gulf Oil Company Limited (CABGOC).
Building O is located off the coast in the Cabinda region and
Building 14 is in the deep seas.
It also has non-operating interests in Angola LNG Limited, a land-based joint venture. (See “Our history in Angola. More than 60 years of operational excellence“, Chevron Angola).
Sonangol and ENAP, Angola and Chile’s Oil Companies, signed an oil cooperation agreement in August 2014.
With this agreement, the Angola hydrocarbons provider increased its business from 5,000 to 10,000 oil barrels with the option to increase it further depending on Chilean demand. (See “Angola y Chile firman acuerdo en el área de los petróleos“, Embajada de Angola, 13.08.2014).