Lagos — Lekoil says it is currently in talks with Optimum Petroleum Development Company, operator of the OPL 310 Licence over its share of sunk costs and consent fees which fell due on November 30.
The talks was necessitated after Optimum had conveyed its plan to enforce a default clause to Lekoil in a letter as payments to cover the portion of sunk costs and consent fees, which was not received as at when due.
In addition to the fees, Optimum highlighted that Mayfair Assets and Trusts Limited, a fully owned subsidiary of Lekoil had also not made payments to cover general and administrative costs for the year as agreed within the Cost and Revenue Sharing Agreement, CRSA signed by both companies.
In a statement on Tuesday, Lekoil said it “continues to discuss with Optimum on deferment of these payments as the company intends to focus its financial and other resources in support of securing funding for the second phase of the Otakikpo development as well as the Ogo appraisal programme”.
Working with Optimum, Lekoil said it has identified and engaged an appropriate rig for the appraisal drilling where the service provider has accepted the result of the early performed site survey.
“It is well known that over the years, Lekoil has resolved similar issues due to the good working relationship between the parties. Lekoil has been able to receive multiple extensions on outstanding payments and remains hopeful of a mutually acceptable solution being reached shortly”.
To finance the appraisal programme, Lekoil said it has explored and is in constructive discussions with potential financiers to provide a combination of cost effective vendor and alternative financing solutions.