Singapore's PACC Offshore Services Holdings (POSH) has filed a notice of arbitration against Mexico over the ending of OSV charters.
It alleges the government violated a treaty agreement between Mexico and Singapore over the promotion and reciprocal protection of investments.
The legal action is "in relation to certain of the group’s investments in Mexico, specifically those made to charter certain vessels for use by Pemex, Mexico’s state-owned oil company," it said.
"Beginning in 2014, Mexico took actions in violation of the agreement...under chapter II of the bilateral investment treaty".
It said the actions prevented it from continuing to charter the ships to Pemex, and thereby destroyed investments it had made in Mexico.
It is seeking compensation for the value of those investments.
For the third quarter of 2014, TradeWinds reported that POSH said its bottom line was hit by a $5m loss from its Mexican business after a court ordered Pemex to stop paying charter hire to one of POSH’s clients in the country.
