Long Well Group Ltd v Commerzbank AG: Discovery of Documents & Funding Obligations in Libyan Oil Venture
Long Well Group Ltd, PT Citrabumi Sacna, Private Energy Pte Ltd, and First Power International Limited sued Commerzbank Aktiengesellschaft, Commerz Asset Management Asia Pacific Pte Ltd, Commerzbank Asset Management Asia Ltd, and Commerz Asia Best SPC in the High Court of Singapore, seeking recovery of losses from a Libyan oil and gas venture. The plaintiffs appealed against Assistant Registrar Bryan Fang's decision regarding further discovery of documents. Justice Choo Han Teck dismissed the appeal, finding the requested documents irrelevant to the plaintiffs' pleaded case concerning the defendants' alleged funding obligations.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal dismissed with costs reserved to the trial judge.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiffs sought further discovery of documents to prove defendants' funding obligations in a Libyan oil venture. The court dismissed the appeal, finding the documents irrelevant to the pleaded case.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Long Well Group Limited | Plaintiff, Appellant | Corporation | Appeal Dismissed | Lost | Christopher De Souza, Darrell Wee Jiawei, Nandhu |
| PT Citrabumi Sacna | Plaintiff, Appellant | Corporation | Appeal Dismissed | Lost | Christopher De Souza, Darrell Wee Jiawei, Nandhu |
| Private Energy Pte Ltd | Plaintiff, Appellant | Corporation | Appeal Dismissed | Lost | Christopher De Souza, Darrell Wee Jiawei, Nandhu |
| First Power International Limited | Plaintiff, Appellant | Corporation | Appeal Dismissed | Lost | Christopher De Souza, Darrell Wee Jiawei, Nandhu |
| Commerzbank Aktiengesellschaft | Defendant, Respondent | Corporation | Appeal Dismissed | Won | Khelvin Xu Cunhan, Tao Tao |
| Commerz Asset Management Asia Pacific Pte Ltd | Defendant, Respondent | Corporation | Appeal Dismissed | Won | Khelvin Xu Cunhan, Tao Tao |
| Commerzbank Asset Management Asia Ltd | Defendant, Respondent | Corporation | Appeal Dismissed | Won | Khelvin Xu Cunhan, Tao Tao |
| Commerz Asia Best SPC | Defendant, Respondent | Corporation | Appeal Dismissed | Won | Khelvin Xu Cunhan, Tao Tao |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Christopher De Souza | Lee & Lee |
| Darrell Wee Jiawei | Lee & Lee |
| Nandhu | Lee & Lee |
| Khelvin Xu Cunhan | Rajah & Tann LLP |
| Tao Tao | Rajah & Tann LLP |
4. Facts
- Plaintiffs claimed losses in a business venture with defendants involving oil and gas drilling in Libya.
- Plaintiffs alleged defendants represented they would provide/raise funds for exploration and development.
- A fund named 'Commerz Asia Emerald' was set up by the third defendant for the venture.
- Emerald and Pertamina entered into a joint-operating agreement (JOA).
- Plaintiffs claimed defendants failed to contribute US$50m, hindering the venture.
- Plaintiffs sought discovery of an arbitral award between Pertamina and the fourth defendant.
- Plaintiffs sought discovery of letters of credit issued by the first defendant in favor of PEPL.
- Plaintiffs sought discovery related to a bank account opened by PEPL with the first defendant.
5. Formal Citations
- Long Well Group Ltd and othersvCommerzbank AG and others, Suit No 28 of 2012(HC/Registrar’s Appeal No 207 of 2016), [2016] SGHC 158
6. Timeline
| Date | Event |
|---|---|
| Discussions held between plaintiffs' and defendants' representatives regarding funding for oil and gas venture in Libya. | |
| Representations allegedly made by defendants to plaintiffs regarding funding. | |
| Representations allegedly made by defendants to plaintiffs regarding funding. | |
| First and second plaintiffs signed a transfer agreement to buy shares Emerald had in the joint venture. | |
| Arbitral award issued in arbitration between Pertamina and the fourth defendant. | |
| Suit filed (Suit 28 of 2012). | |
| Hearing date. | |
| Judgment reserved. |
7. Legal Issues
- Discovery of Documents
- Outcome: The court held that the requested documents were not relevant or necessary for the fair disposal of the case.
- Category: Procedural
- Sub-Issues:
- Relevance of documents
- Necessity of documents
- Breach of Contract
- Outcome: The court did not make a definitive ruling on breach of contract, but the relevance of the documents sought was tied to establishing a funding obligation.
- Category: Substantive
- Negligence
- Outcome: The court did not make a definitive ruling on negligence, but the relevance of the documents sought was tied to establishing a funding obligation.
- Category: Substantive
- Misrepresentation
- Outcome: The court did not make a definitive ruling on misrepresentation, but the relevance of the documents sought was tied to establishing a funding obligation.
- Category: Substantive
8. Remedies Sought
- Recovery of alleged losses
9. Cause of Actions
- Breach of Contract
- Negligence
- Misrepresentation
10. Practice Areas
- Litigation
- Commercial Litigation
11. Industries
- Oil and Gas
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| AAY v AAZ | High Court | Yes | [2011] 1 SLR 1093 | Singapore | Cited for the principle that confidentiality of arbitral awards may be waived if the court considers discovery relevant and necessary for the fair disposal of the case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Banking Act (Cap 19, 2008 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Discovery of documents
- Funding obligation
- Libyan concession
- Joint-operating agreement
- Commerz Asia Emerald
- Pertamina
- PEPL
- Arbitral award
- Letters of credit
- Banking secrecy
15.2 Keywords
- discovery
- documents
- funding
- oil
- gas
- venture
- contract
- negligence
- misrepresentation
16. Subjects
- Civil Procedure
- Contract Law
- Banking Law
17. Areas of Law
- Civil Procedure
- Discovery of Documents