Says “No” To New Aje Well… “The Norway based minnow has struggled to pay its cash calls”
Oslo listed explorer Panoro Energy has commenced dispute resolution proceedings with the OML 113 joint venture partners by filing a request for arbitration with the Secretariat of the International Chamber of Commerce. The proceedings are taking place in the English High Court.
“The dispute concerns the purported passing of resolutions by the joint venture partners with respect to a proposed new well to be drilled at Aje in OML 113, and a related cash call”, the company explains.
“While Panoro has the financial ability to fully meet the amount of this disputed cash call, the Company believes the drilling of any new well is pre-mature at this stage”.
OML 113 is operated by Folawiyo Aje Services Ltd (FASL), a wholly owned subsidiary of Yinka Folawiyo Petroleum. It is made up of consultants and staff from the JV partners, who include New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, Pan Petroleum (Panoro Energy) Aje Limited and PR Oil & Gas Nigeria Limited.
Panoro Energy didn’t make it clear which particular well it is opposed to the drilling of. The facts in the public domain have always been that the partners will drill two new wells, Aje 6 and 7, after commencement of commercial production.
Aje field commenced commercial production in May 2016 after the completion of Aje 4 and Aje 5. Partners interviewed by Africa Oil+Gas Report say that Panoro has struggled to pay its share of cash calls “for some time now.”
Panoro says in its press release also of a firm view that the decision to incur such additional capital expenditures at Aje unambiguously requires unanimous consent of joint venture partners, which as such has not been taken in accordance with the Joint Operating Agreement procedure.
Panoro will seek to recover all losses, costs, expenses, compensation and damages in law and equity caused directly or indirectly by the joint venture partners’ breach of their contractual and equitable obligations. Panoro will also continue to take all necessary action to retain its equity participation in OML 113 and to preserve shareholder value.