Monde Petroleum SA v Westernzagros Ltd

Monde Petroleum SA v Westernzagros Ltd

The phrase 'fully operational and enforceable' in the CSA required both the KRG and the Federal Government of Iraq to be 'onside', specifically requiring a letter from the Iraqi Government as contemplated in the third milestone. There was no requirement for WZL to serve notice of termination immediately upon expiry of the six-month period; WZL could terminate at a time of its choosing while the EPSA was not fully operational and enforceable.

Parties
Appellant/claimant: Monde Petroleum SA; Respondent/defendant: Westernzagros Limited
Jurisdiction
England and Wales
Judgment Date
18 January 2018
Procedural Posture
Civil Appeal / Appeal From High Court (commercial Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Interpretation of Contract Clauses, Termination of Contract, Misrepresentation, Economic Duress
Contract Law Commercial Law Interpretation of Contract Clauses Termination of Contract Misrepresentation Economic Duress

Case Brief

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Parties

Monde Petroleum SA

Appellant/claimant

Westernzagros Limited

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court) to Court of Appeal

Legal Issues

  1. 1 Meaning of 'fully operational and enforceable' in the context of the EPSA under the CSA
  2. 2 Whether WZL was required to serve notice of termination immediately upon expiry of the six-month period

Ratio Decidendi

The phrase 'fully operational and enforceable' in the CSA required both the KRG and the Federal Government of Iraq to be 'onside', specifically requiring a letter from the Iraqi Government as contemplated in the third milestone. There was no requirement for WZL to serve notice of termination immediately upon expiry of the six-month period; WZL could terminate at a time of its choosing while the EPSA was not fully operational and enforceable.

Court Disposition

Appeal dismissed

Orders

  • Permission for the Appellant to rely on a supplementary skeleton argument is refused.
  • The Appellant’s appeal is dismissed.