Axiom maintains $110mn lawsuit against Tidewater over Canadian asset dispute

Canadian company Axiom Oil and Gas Inc. is pursuing legal action against Tidewater Midstream and Infrastructure Ltd. for $110mn, alleging contractual breaches related to a gas handling agreement on a property located in the Brazeau area. The dispute comes as the sale process for the asset, managed by Sayers Energy Advisors, nears its deadline, with bids expected by November 27.

Contested contract over gas handling

Axiom argues that Tidewater discontinued sour gas handling services despite the existence, in its view, of a separate Gas Handling Agreement (GHA) that does not include a limitation of liability clause. Although Axiom’s request for an injunction was denied, the company states it secured critical information on an expedited basis to support its main legal case.

In its statement, Axiom said that new evidence has come to light since the injunction filing. These documents reportedly strengthen its position that Tidewater was not entitled to suspend services, which directly impacted Axiom’s ability to access and exploit its gas reserves.

Stranded reserves remain untapped

The legal conflict has directly led to the shutdown of Axiom’s gas reserves, now considered “stranded”. The company maintains that resolving the legal impasse is a prerequisite for restarting operations. Axiom stated that it continues to pursue its court action with the aim of securing a ruling that would allow production to resume.

The disputed property is currently listed among the assets up for sale. The process, overseen by Sayers Energy Advisors, is in its final stage, with a bid deadline set for November 27. Axiom did not specify whether the ongoing litigation may affect the valuation of the property or the criteria for selecting buyers.