Panoro Energy has filed a request for arbitration against its joint venture partners in OML 113 off Nigeria due to a cash call notice for a new well on the Aje field.
Panoro, through its fully owned subsidiary Pan Petroleum Aje Limited (PPAL), holds 6.502% participation interest in OML 113. The partners in the license are the Nigerian oil company Yinka Folawiyo Petroleum, the operator, New Age, Energy Equity Resources, and Jacka Resources.
Following the announcement made by Panoro on December 5, 2016, in respect of an interim injunction granted to PPAL against its joint venture partners by the English High Court, PPAL on Monday formally started dispute resolution proceedings with the OML 113 joint venture partners by filing a request for arbitration with the Secretariat of the International Chamber of Commerce.
The company explained on Tuesday that the dispute concerns the purported passing of resolutions by the joint venture partners with respect to a proposed new well to be drilled at Aje in OML 113, and a related cash call.
“While Panoro has the financial ability to fully meet the amount of this disputed cash call, the company believes the drilling of any new well is pre-mature at this stage. Panoro is also of a firm view that the decision to incur such additional capital expenditures at Aje unambiguously requires unanimous consent of joint venture partners, which as such has not been taken in accordance with the Joint Operating Agreement procedure, ” the company further explained.
Panoro also added it 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.