Afren settles claims against former CEO, COO

Drillers working on an Afren rig.

Drillers working on an Afren rig.

03 January 2015 – British oil and gas producer Afren Plc said it had secured $17.1 million from its former chief executive and chief operating officer in relation to unauthorised payments that caused a scandal last year.

Afren said it will not pursue legal proceedings against founder and former CEO Osman Shahenshah and former COO Shahid Ullah and released the pair of claims in connection with the issue.

Afren fired the two executives in October, along with two associate directors, and disciplined seven more employees after a review into three transactions found evidence of “gross misconduct”.

The company also said it has received $3 million to cover the costs of the investigation.

The scandal rocked investor confidence in the company and, combined with plunging oil prices, wiped off nearly 80 percent of Afren’s share value.

Afren shares closed the year at 47.28 pence, up from a five-year low of 33.42 earlier in December.
*Abhiram Nandakumar, Bengaluru; Sunil Nair – Reuters

About the Author