Transnational Corporation of Nigeria Plc and Efora Energy Limited has reached an agreement to settle all legal disputes on Oil Prospecting Licence 281 (“OPL 281”).
In a statement released on Friday through the Nigerian Stock Exchange (NSE), Transcorp said the new agreement reached provides full and final settlement for all disputes and claims of both parties in connection with a participating interest in OPL 281, initially assigned to Efora in October 2006.
The company explained that the resolution is important given that it is one of the legacy issues inherited by the core investor that took over Transcorp in 2011.
It, therefore, stated that under the terms of the settlement, Transcorp will pay a total sum of $5.5 million over a period of thirteen months to Efora to put an end to the dispute and discontinue all pending lawsuits and arbitration in relation to their claims.
Commenting on the development, 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.”
On his part, Efora’s CEO, Damain Matroos 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.”