By Kim Richters
Repsol SA said Friday that it has recognized a provision of 837 million euros ($908.97 million) in its financial statements for last year, relating to long-running arbitration proceedings against its Talisman subsidiaries.
The Spanish company said the provision relates to arbitration proceedings against its subsidiaries Talisman Energy and Talisman Colombia Holdco that were started by Addax Petroleum UK Ltd. and Sinopec International Petroleum Exploration and Production Corp. in 2015.
Repsol said that although the amount of possible compensation, if any, isn't known, the EUR837 million provision was taken for the entire litigation.
Repsol said that Addax and Sinopec are asking for a total compensation payout of around $5.5 billion.
"The company is analyzing possible action against this partial award and expects to challenge it before the Singaporean courts," it said.
Write to Kim Richters at firstname.lastname@example.org
Corrections & Amplifications
This article was corrected at 1318 GMT to reflect that Repsol said that although the amount of possible compensation, if any, isn't known, the EUR837 million provision was taken for the entire litigation. The original version of this article misstated that the provision amount related to a partial award in the third paragraph.