MOSAIC OIL NL v ANGARI PTY LTD and ANOR [1990] NSWCA 129

MOSAIC OIL NL v ANGARI PTY LTD and ANOR [1990] NSWCA 129

The definition of 'defaulter' in CL121 applies exclusively throughout Article 12, including CL1232. Thus, a party may only suffer loss of participating interest under CL123 if it is a defaulter as defined, even if an insolvency event occurs. The Operator is not subject to the default provisions except as expressly provided. The appeal is dismissed because the trial judge's construction that only defaulters forfeit participating interests under CL123 is correct.

Parties
Appellant: Mosaic Oil NL; Respondent: Angari Pty Ltd; Respondent: Hartogen Energy Ltd
Jurisdiction
Australia
Judgment Date
18 December 1990
Procedural Posture
Appeal / Judgment
Outcome
appeal dismissed
Legal Topics
Construction of Contract Terms, Definition of 'defaulter', Petroleum Exploration Joint Venture, Default Provisions, Operator Status
Contract Law Construction of Contract Terms Definition of 'defaulter' Petroleum Exploration Joint Venture Default Provisions Operator Status

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Parties

Mosaic Oil NL

Appellant

Angari Pty Ltd

Respondent

Hartogen Energy Ltd

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether the definition of 'defaulter' in CL121 applies exclusively to CL1232 regarding cessation of participating interest
  2. 2 Whether insolvency or winding up of a party triggers forfeiture under the agreement
  3. 3 Whether the Operator can be a 'defaulter' under the default provisions

Ratio Decidendi

The definition of 'defaulter' in CL121 applies exclusively throughout Article 12, including CL1232. Thus, a party may only suffer loss of participating interest under CL123 if it is a defaulter as defined, even if an insolvency event occurs. The Operator is not subject to the default provisions except as expressly provided. The appeal is dismissed because the trial judge's construction that only defaulters forfeit participating interests under CL123 is correct.

Court Disposition

appeal dismissed

Orders

  • appeal dismissed with costs