OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

• Seeks mutually agreed interpretation of agreement

LEKOIL, an oil and gas exploration and production company with focus on Nigeria and West Africa region has announced that Mayfair Assets and Trusts Limited, in which it has a 90 per cent economic interest, has received a letter from Optimum Petroleum Development Company OPDC), the operator of the OPL 310 licence, proposing to terminate the cost and revenue sharing agreement (CRSA) executed for OPL 310.

But LEKOIL said it is concerned that the letter proposing to terminate the CRSA was not valid, as the relevant provisions of the CRSA have not been adhered to by Optimum Petroleum Company.

As a result, LEKOIL E&P is engaging with Optimum Petroleum Development Company to ensure that the appropriate steps outlined in the agreement are followed, and it is also seeking legal advice on the matter.

On December 11, 2020, Optimum Petroleum had conveyed its enforcement of the default clause within the CRSA.

The default clause stipulates that if a default has occurred, Optimum Petroleum Development Company and Mayfair Assets & Trusts shall jointly seek and agree on a buyer to whom Mayfair’s 17.14 per cent participating interest (PI), as well as, the financial obligation within OPL 310, will be transferred.

Mayfair Assets & Trusts Ltd will also be entitled to a full reimbursement of all amounts due to it, as a result of past costs spent on the asset, from future production proceeds from OPL 310.

Meanwhile, LEKOIL E&P said, it is confident that a mutually agreed interpretation of the agreement is in the best interest of both parties.