Nostra Terra Oil and Gas Co has announced that a dispute between its subsidiary and North Petroleum over the East Ghazalat concession has been referred to arbitration, Morning Star reported.

North Petroleum Company referred the dispute to the London Court of International Cooperation after talks between the two companies broke down.

Sahara Petroleum, a subsidiary of Nostra Terra, believes that Chinese company North Petroleum has failed to commit to its agreement regarding the joint-operation of the concession.

Sahara Petroleum owns a 50% stake in the East Ghazalat concession, which is operated by North Petroleum.

Nostra Terra CEO Matt Lofgran said: “Our goal has always been to do what is best for the concession and will deliver most value for all stakeholders. We believe that arbitration will be the best way forward to realize value at this point.”