BP wins arbitration case against Venture Global over LNG delivery failure

Core Viewpoint - BP has successfully won an arbitration case against Venture Global regarding the failure to deliver liquefied natural gas (LNG) under a long-term contract that was supposed to start in late 2022 [1][2]. Summary by Sections Arbitration Outcome - The International Chamber of Commerce's International Court of Arbitration issued a partial final award to BP, confirming that Venture Global breached its obligations by not timely declaring the commercial operations date of the Calcasieu Project [2]. - BP is seeking over $1 billion in damages, including interest, costs, and attorneys' fees [2]. Future Proceedings - A separate hearing to assess the damages owed to BP is scheduled for 2026, after which a final award will be issued [3]. Company Reactions - Venture Global expressed disappointment with the arbitration tribunal's decision and is evaluating options to respond to the ruling [3]. - BP expressed satisfaction with the arbitration results and is focused on determining the compensation amount due to Venture Global's breach of contract [3]. Context of the Case - This ruling contrasts with a previous arbitration case in August 2023, where Venture Global won against Shell, which had also claimed that Venture Global prioritized spot market sales over fulfilling long-term contract obligations [4]. - The reasons for the differing outcomes in the two cases remain unclear, with Venture Global arguing that it was allowed to conduct spot sales due to delays caused by a faulty power island [5]. Recent Developments - BP has commenced production at the Murlach field in the UK North Sea, marking its sixth major upstream oil and gas project to start this year [5].