CPC refutes misleading media reports

Ceylon Petroleum Corporation (CPC) in a press release issued yesterday refuted a series of media reports concerning the disputed hedging transaction of the CPC with Standard Chartered Bank (SCB), Citibank NA (Citi) and Deutsche Bank AG (DB).

Contrary to what has been said in these media reports the decisions of the arbitration tribunals and courts have not been announced yet. Thus, these reports “are totally untrue and baseless”, it said.

“In fact, the inquiries into the disputed oil hedging transactions entered into by the CPC with SCB and DB have not even begun, and are only due to commence in March 2011 and August 2011, respectively.

“In the meantime, the legal counsellors representing the CPC are confident that the ongoing arbitrations and litigation on the ‘disputed oil hedging transactions’ where the CPC has alleged ‘mis-selling’ on the part of the banks, will be concluded in favour of the CPC.”