Lagos — The Asset Management Corporation of Nigeria, AMCON, Pan Ocean Oil Corporation Nigeria Limited alongside Newcross Petroleum Limited have agreed to an out-of-court-settlement over pending debts as they await consent of the Federal High court.
The agreement ends the debt dispute between AMCON, Pan Ocean and other syndicate of lenders.
Confirming the settlement, Pan Ocean’s Management remarked that the settlement is welcomed and allows the businesses to focus on its core operations.
AMCON’s Management also said the settlement is in line with its role as a resolution vehicle to help stabilise and revitalise the Nigerian banking system and economy.
“We recognise the effort of Pan Ocean and its related companies to transform the oil and gas industry, and are committed to ensuring that the divestment reduces the gearing level of the organisation, while supporting Pan Ocean towards its goal of continued financial health.”
“This agreement with Pan Ocean reflects the commitment of AMCON to supporting Nigerian companies with proven business case to remain afloat in the face of macro-economic induced challenges”.
The debt was acquired by Pan Ocean Group and subsidiaries for the development of Oil Prospecting Licenses, Oil Mining Licenses, construction of the 200mmscf/day Ovade- Ogharefe Gas Processing Plant and construction of the 67km, 20 inch Amukpe-Escravos Oil Pipeline.
Some of the projects partly funded by Pan Ocean with proceeds of the loans include the Amukpe-Escravos Pipeline which is a low-risk underground pipeline with a delivery capacity of 160,000 barrels of crude oil per day that will evacuate crude oil to the Escravos Tank farm.
The indegenous oil and gas firm also said it invested in the development of other assets, including a Production Sharing Contract awarded in 2007 that is currently producing an estimated 45mmscf of gas and 3,400 barrels of oil per day.
Established almost fifty years ago, Pan Ocean is one of the original seven companies with which the Federal Government of Nigeria, through the Nigerian National Petroleum Corporation, NNPC signed participation agreements in 1979.
“We remain committed to the development of the oil and gas industry in the country through extensive investment in assets to support oil and gas production and communities and local content policy implementation”, the statement said.