Dommo suffers defeat in court against Petronas

A setback in the courts for Dommo Energia (formerly OGX). The company announced that the court of the International Chamber of Commerce rejected its claim for damages against the Malaysian company Petronas. With the defeat, Dommo will likely be forced to bear the costs related to the arbitration process.

This is a dispute that has dragged on since 2013 between the two companies. During that period, amid the collapse of the Eike Batista conglomerate, Petronas gave up on buying a 40% stake in the Tubarão Martelo field, located in the Campos Basin, from OGX. The transaction, at the time, was valued at US$ 2.6 billion.

Dommo claimed that Petronas had not complied with details of the agreement and intended to be compensated for financial losses. “Considering the outcome of the decision (…), the company expects to be required to bear certain costs incurred by the counterparty as a result of the arbitration,” the company said in a statement.

The year started very busy behind the scenes at Dommo. At the beginning of January, the company underwent an important shareholder change, after Prisma Capital had consolidated its majority shareholding position in the oil company, with more than 50% of the shares issued. Prisma stated at the time that it intends to meet with Dommo’s current management to decide on possible changes in management and to evaluate strategic options in the sector in which it operates.