Denver — LUKoil, Russia’s largest oil company, is pressuring
Archangel was given 20 days to sign the document, which would terminate its 1993 agreement (and various other agreements) with Arkhangelskgeoldobycha (AGD) without compensation. AGD is a geological company previously owned by the state and now held 74.5% by LUKoil.
The Russians have vowed to expel Archangel from the project if the document is not signed within the next few weeks. They also has filed suit against Archangel in the Russian courts.
“Obviously, LUKoil and AGD are seeking to take from us all rights, titles and interest that we have earned in Russia over the past eight years,” says Archangel President Timothy Haddon. “Their complete avoidance and fear of international arbitration is clearly demonstrated in their legal action, by which they are seeking to avoid the scrutiny of international arbitrators.”
Archangel is continuing efforts to arbitrate the dispute in Sweden, as provided for in its original agreement with AGD. Those efforts are being hampered by LUKoil, which recently filed claims with an arbitration court in Russia. The oil giant is trying to overturn AGD’s agreement with Archangel, and to prohibit AGD and Archangel from proceeding with the arbitration process in Sweden.
Archangel plans to resist attempts to seize its 40% interest in the Verkhotina licence, which includes the Grib pipe hosting 67 million carats of recoverable diamonds within 98 million tonnes, grading 69 carats per 100 tonnes. The company has the backing of its largest shareholder, Task Holdings, which is owned by the Oppenheimer family of De Beers Consolidated Mines fame. Task owns about 40.9% of Archangel (T.N.M., Sept.3-9/01).
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