Transcorp Plc Pays $5.5 Million to Settle OPL 281-Related Disputes with Efora Energy Ltd

Transcorp Plc announced earlier today that it has finally reached a settlement agreement with Efora Energy Ltd over the Oil Prospecting Licence (OPL) 281 disputes between them. Business Elites Africa understands that both companies have been at loggerheads with each other for years now, in battle for the oil well.

The dispute can be traced back to 2006 when the OPL 281 was previously assigned to Sacoil Holdings Limited, now Efora Energy Ltd. As at 2011, the new owners of Transcorp Plc (led by billionaire businessman Tony Elumelu) inherited the dispute. Since there, efforts have been put in place by the new owners towards resolving the matter.

A public disclosure that was sent by Transcorp Plc to the Nigerian Stock Exchange noted that “the agreement provides for the full and final settlement of all disputes and claims of both parties in connection with a participating interest in OPL 281 previously assigned to Efora in October 2006. The resolution of the dispute is significant, given that it is one of the legacy issues which the core investor that took over Transcorp in 2011 inherited, and has been taking steps to resolve.”

The statement further stated that both companies agreed to amicably settle their differences by foregoing their respective claims against each other. In other words, they will discontinue all pending litigations. But then again, Transporp Plc will pay the sum of $5.5 million to Efora Energy Ltd over a 13-month period.

The Chief Executive Officers of both Transcorp Plc and Efora Energy Ltd expressed their delight over the settlement agreement, with Owen Omogiafo of Transcorp saying that she is “glad that the mutual understanding that resulted in our partnership at inception, has brought about this win-win resolution with great potential for future cooperation. We see this as a significant development that will pave way for our planned development and optimization of the Oil & Gas asset without legal constraints. OPL 281 remains a prolific asset that will contribute substantially to the performance of the company upon completion of its development.”