“OVL, with the approval of its board, is invoking arbitration against the ministry of energy and mining (MEM), government of Sudan for safeguarding its interest,” OVL said.
The ambassador advised that “If OVL feels it has the documents and legal authority to back its claims, it should sue the MEM.”
The Ambassador conveyed that “OVL’s deal with MEM is a commercial venture. The dispute should be tackled commercially”, OVL has said.
The 741-kilometer pipeline project for shipping petroleum products to Port Sudan on the Red Sea was given to OVL by the ministry of energy and mining, Sudan for a cost of $194 million.
The pipeline project was again sub-contracted by OVL to Dodsal at a cost of $133 million.
Dodsal, after the conclusion of the project, had raised additional claims of $37 million which in turn were taken up for settlement with the government of Sudan, OVL informed the ministry.
However, regardless of pursuing the settlement of claim issue at many levels, including diplomatic channels, there has been no response from the Sudanese government, OVL added.
“Dodsal has now initiated arbitration proceedings against OVL through a notice in December 2008,” the letter stated, adding that while preparing the defence in Dodsal’s arbitration case, India’s Additional Solicitor General KP Pathak, too, has opined that “OVL should immediately initiate arbitration against the MEM, government of Sudan.”
