Discovery Geo Corp v STP Energy Pte Ltd

The High Court of New Zealand dismissed an application by Discovery Geo Corporation (DGC) seeking interim measures in support of an arbitration before the International Chamber of Commerce. The application sought an order that STP Energy Pte Ltd withdraw its application for transfer of a petroleum exploration permit, or alternatively, an order prohibiting STP from completing the transfer of the permit. DGC argued that STP had repudiated their Definitive Agreement and the operating agreement and wrongfully transferred DGC's working interest in the permit. However, the Court found that the interim measures sought went beyond the scope of relief in the arbitration, harm was adequately reparable by damages, and the balance of harm weighed against DGC. Further, the Court was not satisfied DGC had discharged the burden of showing a reasonable possibility of success on the merits of the claim. Finally, the Court found the delay in bringing the application was profound and defeating. For these reasons, the application for interim measures was dismissed.