Luxembourg court docket bailiffs problem new seizure orders for models of Malaysian state oil agency in long-running land dispute.Luxembourg court docket bailiffs issued new seizure orders for 2 models of Malaysian state oil agency Petronas this week, following a bid by descendants of a former sultanate to implement a $15bn award they’d received towards Malaysia, based on the heirs’ lawyer and court docket paperwork seen by the Reuters information company.
The Filipino heirs of the final Sultan of Sulu are searching for to implement a $14.9bn award granted to them by a French arbitration court docket final yr amid a long-running dispute with the Malaysian authorities over a colonial-era land deal.
Malaysia, which didn’t take part within the arbitration, maintains the method is prohibited. It obtained a keep on the award in France however the ruling stays enforceable abroad beneath a United Nations treaty on arbitration.
Petronas has stated it can contest any claims made on its property and Malaysia has promised to make use of all authorized measures to forestall its property, together with state-linked corporations, from being seized abroad.
The Petronas Azerbaijan (Shah Deniz) and Petronas South Caucasus models had been first seized in July 2022 however the Malaysian authorities stated final month the order had been put aside by a Luxembourg district court docket.
On Tuesday, Luxembourg court docket bailiffs issued a second seizure order on the models and associated financial institution accounts, court docket paperwork shared by the heirs’ lawyer, Paul Cohen, confirmed.
Cohen, of the UK legislation agency 4-5 Grey’s Inn Sq., instructed Reuters the Luxembourg district court docket had certainly lifted the primary seizure order on a minor problem that has since been addressed however had not made a judgement on the deserves of the arbitration.
“There was a technical ruling that has now been successfully handled, and the freezing orders are as soon as extra in place on the Petronas property in Luxembourg,” he stated through e-mail.
The Luxembourg court docket couldn’t be instantly reached for remark. Petronas and Malaysia’s legislation minister didn’t reply to requests for remark.
The dispute stems from a deal signed in 1878 between two European colonists and the Sultan of Sulu to be used of his territory in present-day Malaysia – an settlement unbiased Malaysia honoured till 2013, paying the monarch’s descendants a token sum yearly.
Kuala Lumpur stopped the funds after a bloody incursion by supporters of the previous sultanate who wished to reclaim land from Malaysia. The heirs say they weren’t concerned within the incursion and sought arbitration over the suspension of funds.