US company offers settlement to Grenada Government in oil exploration dispute

NEW YORK, USA, Jan 14, (CMC) - An American oil exploration company said it has offered a settlement proposal in its ongoing dispute with the Grenada Government over a licence for the exploration for oil and natural gas in the island’s territorial waters. However, RSM Production Corporation has maintained that the allegations made against Energy Minister Gregory Bowen would stand if no settlement is reached. In November, RSM filed a US$500 million lawsuit against the Minister, accusing him of denying the company a licence to explore for oil and natural gas in Grenada's territorial waters because of its refusal to offer him a bribe. The Minister has denied the bribery allegations saying that the company had no intentions of exploration but was following a method of making agreements and selling off interests in those agreements to others. However, in a letter addressed to Prime Minister Dr Keith Mitchell, RSM's Chairman Jack Grynberg outlined proposals for the settlement of the dispute. "RSM has been in discussions with a potential partner and operator for a controlling interest of the RSM Grenada production licence which, if acceptable to the Government of Grenada, could potentially provide a means to resolve the dispute. "RSM will undertake to end both the arbitration in front of the International Centre for Settlement of Investment Disputes and the court action filed in the United States District Court should we be able to find a way to confirm the award of the licence to RSM. "Furthermore I would then arrange for a full public apology to Minister Bowen," Grynberb said. Daniel Abrams, one of the lawyers representing the Colorado-based company Wednesday confirmed a letter was sent to the Government with the settlement proposal. "The apology was something that Gregory Bowen had demanded before he would agree to the settlement so for the sake of the settlement, RSM was prepared to tender an apology," Abrams told CMC from his Manhattan office. "This is not uncommon and it's not an admission that any of the allegations are false but rather an attempt to resolve the matter". The Minister has been severely criticised in Grenada with some calling for his resignation over his handling of the negotiations with RSM.