Panoro Energy ASA (Panoro) is in disagreement with its joint venture partners in OML 113 in Nigeria regarding a cash call default notice. Panoro has initiated legal proceedings and intends to initiate arbitration to protect its interests. The Company, through its fully owned subsidiary, Pan Petroleum Aje Limited (PPAL), holds 6.502% participation interest in OML 113.
The Commercial Court division of the High Court in London (the “Court”) heard PPAL’s pleading on 2 December 2016 to seek an interim injunction in order to prevent the other joint venture partners from exercising any purported rights under the default provisions of the OML 113 Joint Operating Agreement (JOA).
The Court order has been received whereby PPAL has been granted an interim injunction. The other joint venture partners are now temporarily restricted from taking any action under the default provisions of the JOA that would prevent PPAL’s continued participation in the JOA and OML 113. The interim relief available is subject to PPAL commencing dispute resolution proceedings in accordance with the JOA by filing a request for arbitration with the Secretariat of the International Chamber of Commerce on or before 5 December 2016. The Company intends to file for arbitration proceedings by this deadline. Under the terms of the Court order, PPAL is also required to provide a customary bank guarantee to the benefit of the respondents.
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.
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