Hyundai Heavy Industries (HHI) has won an arbitration suit against International Petroleum Investment Co. (IPIC) of the United Arab Emirates (UAE), brightening its bid to buy back a stake in Hyundai Oilbank Corp., the company said Monday.

The Singapore International Arbitration Center (SIAC) ruled on Nov. 12 that the Abu Dhabi-based oil investment fund violated an agreement with Hyundai Heavy Industries, the world's largest shipbuilder said in a regulatory filing.

SIAC also ordered IPIC to sell its 70 percent stake or 171 million shares in the South Korea's fourth largest refiner, to Hyundai Heavy Industries for 15,000 won ($13) apiece, Hyundai Heavy Industries said.

The row erupted for the first time late 2007 when Hyundai Heavy Industries claimed that IPIC sought to sell its stake in Hyundai Oilbank in alleged violation of the 2003 bilateral agreement.

Since May 2007, the UAE oil investment fund had been pushing to sell the stake to South Korean conglomerates such as GS Group and Lotte Group.

IPIC took over 50 percent of Hyundai Oilbank from Hyundai Heavy Industries for 613 billion won in 1999 and has raised its interest to 70 percent.

Hyundai Heavy Industries contented that the agreement allows it to have a preemptive right to buy the 70 percent stake from IPIC if the latter seeks to dispose of the interest.

In March 2008, IPIC denied Hyundai Heavy Industries' allegation that it had breached the agreement.

Hyundai Heavy Industries has infringed upon the deal by taking the issue to court instead of participating in an open bidding for the stake late 2007, the investment fund said.

In respond to IPIC's claims, the shipbuilders' board decided on March 25 last year to file a petition with the SIAC to allow it to exercise the preemptive right.