Marubeni Oil & Gas (USA) Inc. has applied for a refund of royalties paid in the past to the US government on deep water leases in the Gulf of Mexico
Jan.29 , 2010
Kerr-McGee Oil and Gas Corporation (“KMOG”), a US independent oil and gas exploration and production company, filed a lawsuit against the United States Department of the Interior (“DOI”) for injunctive and declaratory relief with respect to the DOI’s claims for royalties on certain deep water leases in the Gulf of Mexico. After the trial court’s decision in favor of KMOG and the United States Court of Appeals for the Fifth Circuit’s decision upholding the trial court’s decision in favor of Anadarko Petroleum Corporation (successor-in-interest to KMOG), the United States Supreme Court denied the DOI’s petition for a writ of certiorari.
Marubeni Oil & Gas (USA) Inc. (“MOGUS”), Marubeni Corporation’s consolidated subsidiary, has paid royalties to the DOI on the deep water leases in the Gulf of Mexico, and therefore, applied for the refund of USD198million on November 18, 2009 and USD21million on December 7, 2009 in response to the United States Supreme Court’s decision above.
Although the US federal government is in the process of reviewing MOGUS’s application, as the result of the discussion between MOGUS and its independent auditors with respect to the contents of MOGUS’s application and its accounting treatment, MOGUS has determined that the anticipated refund can be recognized as income for the quarterly period ended December 31, 2009. Accordingly, Marubeni Corporation will recognize the anticipated refund as income for the quarterly period ended March 31, 2010.
As for the impact on the results forecasts for fiscal year ending March 2010, please refer to “Notice Regarding Revisions of Results Forecasts and Dividend Forecasts for Fiscal Year Ending March 2010” and “Summary of Consolidated Financial Results for the 3rd Quarter FY2009”, both of which have been made public today.