Transnational Corporation of Nigeria Plc (“Transcorp”) has agreed to pay Sacoil Holdings Limited, now known as Efora Energy Limited, a total sum of $5.5 million over a period of 13 months to settle all legal disputes surrounding the Oil Prospecting Licence 281 (OPL 281).
In a statement signed by Chike Anikwe, Group Company Secretary (Ag.), Transnational Corporation of Nigeria Plc, the agreement covers the full and final settlement of all disputes and claims of both parties in connection with the disputed OPL 281 assigned to Efora in October 2006.
The company further stated that the agreement is imperative given that it was inherited by core investors in 2011. Under the terms of agreement, both parties agreed to let go of their respective claims and discontinue all pending lawsuits and arbitration concern their claims.
Speaking on the issue, President/CEO of Transcorp, Owen Omogiafo, stated “I am glad that the mutual understanding that resulted in our partnership at inception, has brought about this win-win resolution with great potential for future cooperation. We see this as a significant development that will pave way for our planned development and optimization of the Oil & Gas asset without legal constraints. OPL 281 remains a prolific asset that will contribute substantially to the performance of the company upon completion of its development.”
Damain Matroos, Efora’s CEO, also said “I am very happy to have brought this matter to a close during these challenging economic times and this removes one more legacy issue for the Group. The conclusion of this matter and the receipt of these funds would also allow the Group to allocate more time and resources to invest in new initiatives to generate value for our shareholders.”