A team of former Wall Street oil traders have won a partial victory in a legal dispute with oil major BP.
The legal action surrounds a dispute over how to properly run a remote eastern Canadian refinery, according to court documents.
The legal dispute stems from allegations which were leveled by BP that NARL Refining violated its crude and product supply agreement when the refiner failed to maximise yields at the 115,000 barrel-per-day refinery in Come by Chance, Newfoundland.
BP is said to have alleged that NARL had run the refinery at high rates when it was not economical in order to exploit a clause in their contract which allowed NARL to earn a higher profit on oil refined in excess of 90,000 barrels.
A spokesman for BP has said the arbitration process still has a “long way to go” but the company is confident it will prevail on the remaining issues in the legal dispute.
The arbitration panel ruled late last month that NARL had no contractual obligation to run the refinery to the mutual benefit of both parties and tossed out that part of BP’s allegations.
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