Oil Refineries Entered Into A Contractual Agreement With The Tamar Partnership For The Purchase Of Natural Gas
At the same time, pursuant to discussions between the parties, on November 25, 2012 a compromise agreement was signed between the Tethys Sea Partnership and the Company, whereby the parties agreed as follows ("the Compromise Agreement").
In the Compromise Agreement the Company confirmed that it does not disagree with the argument by the Tethys Sea Partnership that the reduction in supply from January 2012 was due to force majeure.
From August 2012 the Company shall only pay for gas actually supplied and not in accordance with the monthly payments stipulated in the Tethys Sea Agreement.
The amount of up to USD 34 million out of an amount of USD 59 million that the Company paid to the Tethys Sea Partnership on account of gas not yet delivered ("the Accumulated Amount") shall be set off against amounts to which the Tethys Sea Partnership is entitled for gas supplied to the Company from August 2012 until the start of the flow of gas from the Tamar project. The balance of the Accumulated Amount, in the sum of USD 25 million, shall be used as payment for gas the Company consumes from the date gas flows from Tamar until the end of the Tethys Sea Agreement. The sellers shall not be obliged to sell to the Company and the Company shall not be obliged to purchase gas beyond the stated amount of USD 25 million. From the date of the flow of gas from the Tamar project, the Company shall pay the quantities it consumes under the Tethys Sea Agreement at the price stipulated in the Agreement. The period of the Tethys Sea Agreement shall be extended to the end of 2016 or until the date the Company consumes the complete quantity of gas stipulated in the said Agreement, whichever is earlier.The Agreement requires the approval of the Anti-Trust Commissioner.
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