Transcorp Ends OPL 281 Disputes With Efora, to Pay $5.5m

By Dipo Olowookere

The legal disputes between Transcorp Plc and Sacoil Holdings Limited (now Efora Energy Limited) over the Oil Prospecting Licence (OPL) 281 have been resolved.

The two parties agreed to an out-of-court settlement, but Transcorp said it will make a payment of $5.5 million to Efora over a period of 13 months.

A notice from Transcorp said the agreement provides for the full and final settlement of all disputes and claims of both parties in connection with a participating interest in OPL 281 previously assigned to Efora in October 2006.

Under the terms of the announced settlement, both parties agreed to forgo their respective claims against each other and discontinue pending lawsuits and arbitration in relation to their claims.

Transcorp said one of its underlining strengths is the quality of its assets and the OPL 281 oil block is a significant part of its portfolio.

It recently added to its energy asset mix, a 1000MW power generation plant – Afam Power, making it the leading power producer in Nigeria with a combined installed capacity of 1936MW across its power plants.

According to the President/CEO of Transcorp, Owen Omogiafo, “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 optimisation of the oil and 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,” Omogiafo added.

On his part, the CEO of Efora, Mr Damain Matroos, stated that, “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.”