YKVN Secures Victory for PetroVietnam in Vietnamese Tax Dispute
Together with Shearman & Sterling (Paris), YKVN has secured victory on behalf of its client, PetroVietnam, in a major tax dispute under a production sharing contract for a Vietnamese offshore oil concession. In an award issued on 22 May 2015, an Arbitral Tribunal comprised of leading international arbitrators Gary Born (Chairman), David A R Williams QC and Yves Derains rejected all claims against PetroVietnam and ordered the claimants to reimburse PetroVietnam’s costs of the arbitration in full.
The arbitration concerned claims under Vietnamese petroleum, tax and investment law for more than $100 million in respect of taxes paid by the contractors to the Vietnamese Government for profit on oil production. Among other things, the dispute is notable for its precedential value for other contractors in Vietnam’s upstream oil and gas industry. The proceedings were conducted in Singapore on a fast-track basis with the award issued less than 18 months after the initial request for arbitration.
The YKVN’s team was led by senior partner K. Minh Dang and counsel Do Khoi Nguyen. The Shearman & Sterling’s team was led by partner Emmanuel Gaillard (Head of International Arbitration) and partner Yas Banifatemi (Head of Public International Law).