INDEPENDENT PETROLEUM GROUP, Kuwait

September 16, 2009 08:25 ET

IPG Kuwait Hauls State of Eritrea to Court of Arbitration

KUWAIT, KUWAIT CITY--(Marketwire - Sept. 16, 2009) - Independent Petroleum Group (IPG) would like to inform its shareholders that it is in the process of submitting an application to the Court of Arbitration in London (governed by the Rules of Conciliation and Arbitration of the International Chamber of Commerce -ICC Rules), in order to obtain an arbitration award confirming that the State of Eritrea and the Petroleum Corporation of Eritrea - PCE (the National Petroleum Company totally owned by the State of Eritrea) should immediately pay IPG the value of delivered petroleum products of around 19 million Kuwaiti dinars. To be noted is that IPG has been supplying petroleum products to the Petroleum Corporation of Eritrea (PCE) for more than 11 years.

The Company would like to reassure its shareholders that its financial position is solid as the total shareholders' Equity, on 30/6/2009, equals to 57.5 million Kuwaiti Dinars and book value about 378 Fils per share and that the company is conducting it businesses normally, and meeting all it obligations and liabilities to its clients and banks on time and without any delay. Moreover, the Company will not revalue its assets, determined by the International Consultant to be around 80.3 million Dinars, equaling 551 Fils per share (this fact was declared in the Kuwait Stock Exchange on 14/05/2009).

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