LEKOIL, Optimum Restructure OPL 310 Licence Payment

By Modupe Gbadeyanka

An agreement to restructure the final tranche of payment of $7.6 million for the OPL 310 License due on or before Saturday, May 2, 2020 has been reached between LEKOIL and Optimum Petroleum Development Company.

Optimum is the operator of the OPL 310 License and due to the present coronavirus pandemic, which has brought businesses down across the globe, especially those in the oil and gas sector, the restructuring of the payment became necessary.

Observers said this partnership between LEKOIL and Optimum is a demonstration of the rare synergy and progress that is possible if indigenous companies work together.

LEKOIL is an oil and gas exploration and production company with a focus on Nigeria and West Africa.

On January 21, 2020, LEKOIL said it has agreed to pay Optimum $9.6 million, in aggregate, to cover sunk costs and consent fees.

This payment was to be made in two tranches with the first payment of $2.0 million completed as announced on April 3, 2020. The second payment was to come on or before Saturday, May 2, 2020.

However, the prevailing situation has made this impossible, which made both parties to sit on the round table to discuss restructuring the payment.

After talks, both parties have agreed that the final payment of $7.6 million should be paid in three tranches.

The sum of $1.0 million is to be paid on or before July 15, 2020; the sum of $2.0 million is to be paid on or before September 2, 2020; and the sum of $4.6 million is to be paid on or before November 2, 2020.

Speaking on the agreement, the Managing Director of Optimum Petroleum Development Company, Mr Yusuf N’jie, stated that, “The current challenges in the oil industry – the unprecedented supply and demand shock brought on by the COVID-19 pandemic, requires true partnership and collaboration and we are pleased to work with LEKOIL in this regard.”

On his part, CEO of LEKOIL, Mr Lekan Akinyanmi, said, “We would like to thank Optimum for their continued support and understanding during these challenging times for the oil and gas industry and the global economy. We remain aligned and committed to delivering on our joint appraisal ambitions.”

Over the years, LEKOIL and Optimum have worked together to develop OPL310, located on the Dahomey Basin.