OSLO: TGS received the next pleading and the writ from the Wavefield’s counter-claim in the arbitration process between the two companies. Wavefield is claiming damages limited upwards to NOK 150 million (US$26.5 million) plus interest and costs. Wavefield claimed that the amount covers direct losses only.

In the pleading, Wavefield reserves a right to increase the claim on the grounds of “harmful behaviour” on the part of TGS.

The claim is for alleged losses related to lost business opportunities and direct costs in connection with the merger.  TGS and its lawyers reject the claim for compensation as being without legal reasons.

Wavefield said the claim is based upon misrepresentation and serious breach of information obligations regarding TGS’ weak performance in the third quarter of 2007, which Wavefield complain was not uncovered until after Wavefield shareholders has approved the merger between the parties.

The arbitration process will start in Norway on Nov. 3. The arbitration will proceed according to Norwegian law.