Madagascar Oil to Freeze Contracts Over Expropriation, FT Says

Madagascar Oil SA (MOIL) is to freeze its contracts as it prepares for international arbitration on the Madagascar government’s planned expropriation of four concessions, the Financial Times reported, citing an unidentified person familiar with the matter.

Company executives say privately that they see little chance of changing the government’s course, the newspaper said.

The company intends to freeze its contractual obligations by means of a declaration of force majeure, the FT said.

To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.

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