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An eight-year dispute between subsidiaries of Sinopec and Repsol S.A. over North Sea oil and gas assets has been settled through a US$2.1 billion transaction whereby Repsol will acquire Sinopec's 49% share in Repsol Sinopec Resources UK, as announced to the Madrid Stock Exchange on 28 April 2023.

Herbert Smith Freehills has advised Sinopec throughout the dispute and on this settlement and sale transaction.

Disputes partner Tomas Furlong said:

"We are delighted to have helped our client Sinopec meet its objectives for its North Sea business."

"We've advised Sinopec on this matter for over nine years in total, a period that spans some of the most disruptive periods on record for the oil & gas industry, and global business in general."

Global head of energy Lewis McDonald said:

"By combining the strength of our global arbitration and energy practices, we fielded the right team at every stage to adjust for commercial considerations and the client's strategy."

"This collaboration meant we could act swiftly to negotiate and close the final settlement and sale transaction in just under four weeks."

Herbert Smith Freehills fielded a large and bilingual team across a number of offices to advise Sinopec.

Repsol was advised on the settlement and sale transaction by Slaughter & May partner Hywel Davies and associate Valerie Kemp.

 

Note: Completion of the share transfer and the settlement of the arbitration is expected to occur before the end of 2023.

Key contacts

May Tai photo

May Tai

Consultant, Hong Kong

May Tai
Lewis McDonald photo

Lewis McDonald

Global Co-Head of Energy, London

Lewis McDonald
Tomas Furlong photo

Tomas Furlong

Partner, Singapore

Tomas Furlong
Simon Chapman KC photo

Simon Chapman KC

Managing Partner, Dispute Resolution and Global Co-Head – International Arbitration, Hong Kong

Simon Chapman KC

Media contact

For further information on this article please contact

Sally Greig

Head of Communications, Asia

Hong Kong

Media contact

For further information on this article please contact

Lydia Lam

Head of Communications, UK, US & EMEA

London

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Hong Kong Singapore London Mainland China International Arbitration Mergers and Acquisitions Oil and Gas May Tai Lewis McDonald Tomas Furlong Simon Chapman KC