Procedural Background

This document is an Addendum to a First Partial Award, issued by the Sole Arbitrator pursuant to an application by the Claimant under Section 57(3) of the English Arbitration Act 1996. The Claimant sought a correction of the First Partial Award, asserting that the tribunal had erroneously applied an interest rate of 5% rather than 7% and had failed to address the claim for post-award interest. The Respondent, PDVSA Petroleo, did not file any submissions in response to the application despite being invited to do so by the tribunal.

Tribunal's Analysis and Decision

The Sole Arbitrator determined that the Claimant's application was well-founded. The tribunal acknowledged that it had committed a clerical error by inadvertently copying a 5% interest rate when it had intended to award interest at 7%. Furthermore, the tribunal recognized its omission in failing to provide for post-award interest to continue accruing on the substantive sums awarded, consistent with its treatment of the reimbursable tribunal fees.

Consequently, the Sole Arbitrator issued this Addendum to formally correct paragraphs 32, 41, and 42 of the First Partial Award. The operative corrections stipulate that the total sum payable by the Respondent shall bear interest at the rate of 7% per annum, compounded every three months, from the date of the First Partial Award until the date of full payment. The tribunal reserved its jurisdiction over all other outstanding issues between the parties, including the final allocation of costs.