Dommo (Formerly Ogx) Appeals to International Court to Remain in Partnership

The Oil Company Had a Request for Exclusion Made by Partners Enauta (Ex-QGEP) and Barra Energia Approved by CADE Earlier This Year and Appeals to the Court in Paris to Not Leave the Atlanta Field

Dommo (Ex-Ogx) filed a request in the Paris Court of Appeals asking for the annulment of the arbitration ruling that removed it from block BS-4, where it has a 40% stake in the Atlanta field, in the Santos Basin.
The request had been made by partners Enauta (Ex-QGEP) and Barra Energia and had already been approved by CADE as reported by Click Petróleo e Gás on February 4 here on our portal.

The request in Paris was made after the London Court accepted and decided on the compulsory exit of Dommo from the Atlanta Field.
Dommo’s partners each hold a 30% stake in the asset, so Dommo, with its 40%, is the controlling entity of the field.

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Dommo’s claim was that the ruling that excluded it from the partnership was made by an arbitrator who had connections with the office that provided services to the requesting controlling companies.
ANP and the Superior Court of Justice (STJ), which has not yet been notified, must approve what was requested by the English court.

If the Brazilian agencies approve Dommo’s exit from the business, its 40% stake will be equally divided between Barra Energia and Enauta, which will then each hold 50% of the Atlanta Field.

The Reason for the Request

The dispute between the partners and Dommo has been ongoing since October 2017, when Barra Energia demanded Dommo’s exit alleging default and lack of investment in the Field, which were solely the responsibility of it and Enauta.
Dommo then attempted to sell 30% of its stake to Azibras, a subsidiary of the Seacrest group, but the negotiation did not move forward.

Dommo claimed that delays in the delivery and start of operation of the FPSO Petrojarl I were the reasons for its default and also accused, at the time, QGEP of mismanagement.
QGEP, in turn, declared in 2017 that Dommo’s debt with the consortium was R$ 71 million.

Did you know that the Lula field is the production leader in Brazil and that the FPSOs delivered in 2018 helped maintain this leadership? Click here to read the article!