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Business

Transcorp settles legal dispute with Efora on OPL 281, agrees to pay $5.5 million

Transcorp signed an agreement with Efora Energy to settle all existing legal disputes around its Oil Prospecting Licence 281.

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Transcorp settles legal dispute with Efora on OPL 281, agrees to pay $5.5 million

Transnational Corporation of Nigeria Plc announced today that it has entered an agreement with Sacoil Holdings Limited (now Efora Energy Limited, “Efora”) to settle all existing legal disputes around its Oil Prospecting Licence 281 (“OPL 281”). Transcorp will pay a total sum of $5.5m.

This disclosure was made by the company in a press release which was signed by the company’s secretary, Mr. Chike Anikwe.

READ: Most Nigerian banks may fail stress tests if economic downturn persists

According to the information contained in the statement, 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.

The resolution of the dispute is significant, given that it is one of the legacy issues which the core investor that took over Transcorp in 2011 inherited, and has been taking steps to resolve.

READ: Loan scam: Lekoil Limited seals payment extension deal to prevent losing oilfield

However, 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. In addition, Transcorp will pay a total sum of $5.5m over a period of thirteen months to Efora.

What they are saying

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Commenting on the development, President/CEO of Transcorp, Owen Omogiafo, said:

“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.

READ: 2021 Budget: Education and Health sectors to gulp N1.76 trillion

“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.”

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However, Efora’s CEO, Damain Matroos said:

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“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.”

READ: FG seeking approval from National Assembly for $1.2 billion agric loan

How this development strengthens Transcorp

One of the underlining strengths of the Transcorp Group 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.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor.

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Business

Financial autonomy: Judiciary staff union strike to end soon – FG

The Minister stated that the Unions would take up the FG’s offers to their National Executive Committees (NEC).

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ASUU: FG Sets Up Joint Committee To Address SSANU/NASU payment issues

The Nigerian Government says the strike by members of the Judicial Staff Union of Nigeria (JUSUN), and the Parliamentary Staff Association of Nigeria (PASAN) over judicial financial autonomy would end soon.

This was disclosed by the Minister of Labour, Chris Ngige after a meeting between the FG and the Unions in Abuja on Thursday. The Minister added that the Unions would take up the FG’s offers to their National Executive Committees (NEC).

What the Minister is saying

“A lot of work went in. We have exchanged briefs with JUSUN and PASAN.

They have their demands, which they had earlier submitted. The government has given counter offers and properly addressed the burning issue of financial autonomy for state legislature and judiciary,” Ngige said.

“We expect them to work on the documents from tomorrow and if they are satisfied, they should inform us.

And you know that when they are satisfied, the logical thing is to call-off the industrial action. So, we are to receive their views on the government offer by Tuesday morning,” he added.

Ngige urged the unions to resume work in courts and state houses of assembly citing that “We cannot also operationalise them when the courts are closed and heads of courts are not allowed into the courts or their offices.”

He added that the FG had provided documentation and statistics for the state houses of assembly to make appropriate laws and begged the Unions to open the courts and state houses of assembly.

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What you should know

Nairametrics reported last month that the Judiciary Staff Union of Nigeria (JUSUN) announced their strike with the closure of Federal High Courts in different states across the nation. The union said the purpose of the strike was to draw attention to the financial autonomy of Nigeria’s Judiciary.

Governors’ Forum Conference of Speakers of State Legislature and other governance stakeholders also announced that they reached a resolution over the implementation of financial autonomy for State Legislature and Judiciary.

“The issue is about implementation. There has been no objection from governors on judicial and legislative autonomy.

“As a matter of fact, it would not have passed if governors were not in support in the first instance. So, that issue has been fully and holistically addressed,” Kayode Fayemi said.

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Buhari suspends NPA MD, Hadiza Usman, approves investigative probe panel

President Buhari has approved the immediate suspension of the MD of the Nigerian Ports Authority, Hadiza Usman.

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Nigerian Ports Authority, NPA, Hadiza Bala-Usman, Maritime, Ports, Badagry deep seaport, NPA, LADOL collision intensifies, as they throw counter-accusation over contract 

President Muhammadu Buhari has approved the immediate suspension of the Managing Director of the Nigerian Ports Authority (NPA), Hadiza Usman.

The suspension of Usman is to allow the panel of inquiry which is to be set up by the Federal Ministry of Transportation, to investigate the management of the agency to effectively carry out the task.

This disclosure is contained in a statement issued by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, through some tweet posts on his official Twitter handle on Thursday, May 6, 2021.

Shehu pointed out that the suspension follows the approval of the recommendation of the Federal Ministry of Transportation by President Muhammadu Buhari.

The statement from Garba Shehu reads, “President Muhammadu Buhari had approved the recommendation of the Ministry of Transportation under Rt. Hon. Rotimi Amaechi for the setting up of an Administrative Panel of Inquiry to investigate the Management of the Nigerian Ports Authority (NPA).

The President also approved that the Managing Director, Hadiza Bala Usman, step aside while the investigation is carried out. Mr Mohammed Koko will act in that position.

The panel is to be headed by the Director, Maritime Services of the Ministry while the Deputy Director, Legal of the same ministry will serve as Secretary. Other members of the panel will be appointed by the Minister.”

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