Petronas units in Luxembourg ordered seized in colonial-era row

Luxembourg courtroom bailiffs problem new seizure orders for items of Malaysian state oil agency in long-running land dispute.

Petronas
Malaysian state oil agency Petronas has been ordered to pay a $15bn award to the Filipino heirs of a former sultanate over a colonial-era land deal [File: Lim Huey Teng/Reuters]

Luxembourg courtroom bailiffs issued new seizure orders for 2 items of Malaysian state oil agency Petronas this week, following a bid by descendants of a former sultanate to implement a $15bn award they'd gained towards Malaysia, in response to the heirs’ lawyer and courtroom paperwork seen by the Reuters information company.

The Filipino heirs of the final Sultan of Sulu are searching for to implement a $14.9bn award granted to them by a French arbitration courtroom final 12 months amid a long-running dispute with the Malaysian authorities over a colonial-era land deal.

Malaysia, which didn't take part within the arbitration, maintains the method is prohibited. It obtained a keep on the award in France however the ruling stays enforceable abroad below a United Nations treaty on arbitration.

Petronas has stated it should contest any claims made on its belongings and Malaysia has promised to make use of all authorized measures to stop its belongings, together with state-linked firms, from being seized abroad.

The Petronas Azerbaijan (Shah Deniz) and Petronas South Caucasus items have been first seized in July 2022 however the Malaysian authorities stated final month the order had been put aside by a Luxembourg district courtroom.

On Tuesday, Luxembourg courtroom bailiffs issued a second seizure order on the items and associated financial institution accounts, courtroom paperwork shared by the heirs’ lawyer, Paul Cohen, confirmed.

Cohen, of the UK legislation agency 4-5 Grey’s Inn Sq., instructed Reuters the Luxembourg district courtroom had certainly lifted the primary seizure order on a minor problem that has since been addressed however had not made a judgement on the deserves of the arbitration.

“There was a technical ruling that has now been successfully handled, and the freezing orders are as soon as extra in place on the Petronas belongings in Luxembourg,” he stated by way of e-mail.

The Luxembourg courtroom couldn't be instantly reached for remark. Petronas and Malaysia’s legislation minister didn't reply to requests for remark.

The dispute stems from a deal signed in 1878 between two European colonists and the Sultan of Sulu to be used of his territory in present-day Malaysia – an settlement impartial Malaysia honoured till 2013, paying the monarch’s descendants a token sum yearly.

Kuala Lumpur stopped the funds after a bloody incursion by supporters of the previous sultanate who needed to reclaim land from Malaysia. The heirs say they weren't concerned within the incursion and sought arbitration over the suspension of funds.

Post a Comment

Previous Post Next Post