PACC Offshore seeks compensation from Mexico for vessel charter investments

SINGAPORE - PACC Offshore Services Holdings on Monday (May 7) said that the company has filed a notice of arbitration against Mexico under the bilateral investment treaty between the United Mexican States and Singapore governments on the promotion and reciprocal protection of investments.

The arbitration is regarding some of the offshore marine services provider's investments in Mexico, specifically those made to charter certain vessels for use by Mexico's state-owned oil company, Petróleos Mexicanos.

From 2014, Mexico has taken actions that allegedly violate its obligations under Chapter II of the treaty, PACC Offshore said.

"These actions prevented the company from continuing to charter those vessels to Pemex, and thereby destroyed those investments that the company made in Mexico. The company is seeking compensation from Mexico for the value of those investments."

Join ST's Telegram channel and get the latest breaking news delivered to you.