Shell brings PH gov't to arbitration over Malampaya taxes: report

ABS-CBN News

Posted at Jul 22 2016 12:45 AM

MANILA - Shell Philippines Exploration B.V. has filed an arbitration case against the Philippines in relation to a tax dispute before the International Centre for Settlement of Investment Disputes, according to a report.

The arbitration case was registered Wednesday, July 20, 2016, U.S. time, the Investment Arbitration Reporter said. 

Shell Philippines Exploration B.V, is the operator of Malampaya in the southwestern Philippines, along with partners, Chevron Malampaya LLC, a unit of the U.S. energy firm and the Philippines' state-owned PNOC Exploration Corp.

The companies are challenging a 2011 finding by the Philippines' Commission on Audit that the project partners owed the government P53.14 billion ($1.1 billion) in taxes in addition to royalties on the gas produced. 

Shell has earlier initiated a contract-based arbitration case against the Philippines before the International Chamber of Commerce.

The new case before the World Bank-backed International Centre for Settlement of Investment Disputes alleges breaches of the Netherlands-Philippines bilateral investment treaty.