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Zenith Energy issues commencement of the Claim, AAOG Congo explored in consideration of the commercial
To strengthen its position, in addition to the of increasing the Claim amount is also being
update on legal claim also withheld payment of SMP’s final invoice damages suffered by AAOG Congo as direct
for an amount of approximately $650,000 and result of SMP’s drilling performance.
against SMP exercised a retention right over the Rig which, at potential recovery of such costs in its cashflow
The Company has not provided for the
the time, was positioned within the Tilapia oil-
Zenith Energy, the listed international oil and field. SMP subsequently retaliated by obtaining projections. Therefore, any success in this matter
gas production company focused on pursu- a number of unjustified seizure orders over the would enhance the Company’s cash position.
ing African development opportunities, has fixed assets of AAOG Congo in the Republic of Andrea Cattaneo, Chief Executive Officer,
provided an update on the legal claim initiated the Congo, as well as over its local bank accounts. commented: “We are pleased to have success-
during 2019 by its subsidiary in the Republic As detailed in AAOG’s above-mentioned fully obtained the revocation of the court order
of the Congo, Anglo African Oil & Gas Congo announcement dated July 15, 2019, the seizure that had resulted in AAOG’s bank accounts
(AAOG Congo), against Société de Maintenance orders were unenforceable because AAOG being frozen. The recovery of approximately
Pétrolière (SMP), the rig contractor employed Congo’s fixed assets were owned in partnership $36,000 has a symbolic significance because it
for drilling services in wells TLP-103 and TLP- with SNPC, the National Oil Company, and shows that we are steadily achieving the gradual
103C of the Tilapia oilfield, following a series of consequently could not be seized. Further, the recovery of moneys rightfully held by, as well as
significant performance failures by the SMP 102 granting of these orders had no bearing on the owed to, AAOG Congo.
rig during drilling activities. merits of the claim launched in the Paris courts “The Company has consulted with its French
On July 15, 2019, AIM quoted Anglo Afri- by AAOG Congo against SMP. legal advisers and, having evaluated the merits
can Oil & Gas (AAOG), the previous owner of Under the rules and conventions of the of the case and the significant potential com-
AAOG Congo prior to its acquisition by Zenith, Paris commercial court, mediation between pensation payment of at least $3.1mn, intends to
made an announcement confirming that AAOG the parties engaged in a dispute is a recom- zealously pursue AAOG Congo’s Claim. To this
Congo had made the Claim following poor per- mended course of action. As a result, a super- end, we plan to reach out to third party financ-
formance by SMP in the drilling of wells TLP- vised mediation meeting took place during the ing providers, specialised in legal cases such as
103 and TLP-103C and the refusal of SMP to Autumn of 2019. On December 11, 2029, AAOG these, in order to avoid any cash burden being
engage in negotiations to cover the significant announced that mediation efforts had proven incurred by the Company in pursuing the Claim
cost overruns that had been incurred by AAOG unsuccessful and that, as a result, AAOG Congo going forward.”
Congo as a result of this. would continue to vigorously pursue its Claim in Zenith Energy, November 11, 2020
The Claim was launched in the Paris com- the Paris courts.
mercial court against SMP to recover costs The Company can confirm that it has recently
of $3.1mn relating to SMP’s unsatisfactory been successful in obtaining a revocation of the FINANCE
performance. court order that had wrongfully blocked its bank
In taking the decision to launch the Claim accounts. An amount of approximately $36,000 LEKOIL says it has fully
for costs against SMP the following reasons has now been unfrozen and made available to
were considered significant at the time: AAOG provide additional funding for AAOG Congo. repaid Shell subsidiary’s
Congo had maintained extensive, contempo- Zenith believes the Claim launched by
raneous technical records of the failures of the AAOG Congo has merit, especially on account pre-payment facility
Rig and the losses and delays that were caused of the significant evidence collected at the time
as a result; SMP had not put forward evidence, to substantiate its position. LEKOIL, the oil and gas exploration and pro-
of any kind, to suggest that Rig performance was Following interactions with its French legal duction company with a focus on Nigeria and
not the cause for cost overruns; and Advice from advisers, the Company has decided to con- Africa, announces that LEKOIL Oil and Gas
International counsel in London, Paris and the tinue vigorously pursuing the Claim to recover Investments Ltd (LOGL), in which the Company
Congo was that the Claim had merit. costs of approximately $3.1mn. The possibility has a 90% economic interest, has fully repaid the
Pre-payment Facility, as announced on July 2,
2020, it entered into with Shell Western Supply
and Trading Ltd (SWST), a member of the Royal
Dutch Shell group of companies.
The Pre-payment Facility, repayable from
crude oil liftings from Otakikpo, was fully repaid
ahead of its maturity date. Following this repay-
ment, as at November 9, 2020, LEKOIL has an
outstanding balance of external interest-bearing
loans and borrowings of approximately $15.6mn
and a total cash balance of $3.8mn, with $1.3mn
recognised as restricted cash.
Lekan Akinyanmi, LEKOIL’s CEO, com-
mented: “We would like to thank Shell Western
for their continued support and the provision of
a facility which provided short term liquidity for
the Company. We look forward to continuing
our mutually beneficial relationship.”
LEKOIL, November 11 2020

P22 www. NEWSBASE .com Week 46 18•November•2020