Panafrican News Agency

Gambia signs 30-year oil exploration deal with PetroNor

Banjul, Gambia (PANA) - The government of The Gambia has signed a 30-year oil and gas exploration deal with PetroNor, an Axis of Oslo listed Stock Exchange Market Oil and Gas Company, the Ministry of Energy and Petroleum said here in a statement on Sunday.

 

The signing of the deal brought to an end a three-year arbitration case involving the Gambia government and Africa Petroleum Gambia Limited (APGL), claiming over $168 million for damages done to them.

 

Gambian Minister of Energy and Petroleum Fafa Sanyang said the signing of the settlement agreement and the A4 Block Licence agreement was a historic day for the country as it brought to an end a three years of legal battle with Africa Petroleum Gambia Limited.

 

According to the minister, processes leading to the amicable settlement of the dispute and the subsequent luring of PetroNor was not an easy task.

 

"It was a very contentious legal matter that threatened Government's control over certain offshore exploration blocks. We are pleased to have reached a mutually beneficial settlement and the positive implication is lifting that cloud that has hung over the process as a result of the arbitration," Sanyang stated.

 

He revealed that on 30 August,2019,  PetroNor (PN) acquired control of Africa Petroleum Gambia Limited through a revised takeover. PetroNor and Gambia government agreed to settle all of their disputes and terminate the arbitration as well as restore the A4 Licence based on the 2018 model Petroleum Exploration Development and Production Licence Agreement (PEPLA).

 

Sanyang highlighted that PetroNor had twelve months to fulfill the conditions precedent for the licence to be effective; if the Oslo oil giant is expected to meet the conditions during this period or risk termination.

 

Mr. Ebrima S Camara, managing Director of GamFarming and Machinery Company Ltd and PetroNor’s local representative in The Gambia expressed appreciation of the efforts and commitment of both parties in reaching a mutually beneficial settlement.

 

"I would like to thank our technical and legal team in Norway, Abu Dhabi, and the UK for their dedication to see the negotiations through. This is an achievement that brought us closer to potential economic prosperity for the benefit of not only the partners, but the nation of Gambia and its citizens" said Camara.

 

The signing ceremony was witnessed by officials of Gambia Government, senior officials of Ministry of Energy and Justice as well representative of PetroNor.

-0- PANA MSS/AR 20Sept2020