Business
OPL 310 - Legal Update
OPL 310 - Legal Update.
About this update from Fenikso Ltd
[{"type":"text","content":"\n \nRNS Number : 3825U Lekoil Limited 28 March 2019 \n\n28 March 2019\n \nLEKOIL Limited \n(\"LEKOIL\" or the \"Company\")\n \nOPL 310 - Update Re: Application for a Declaration regarding Ministerial Consent\n\nLEKOIL (AIM: LEK), the oil and gas exploration, development and production company with a focus on Africa, provides an update on OPL310 (the \"Block\") with reference to the Company's Application for a Declaration regarding Ministerial Consent (\"Consent\") filed at the Federal High Court, Lagos on March 26, 2018.\n \nFurther to LEKOIL's announcement on 8 February 2019, a Federal High Court sat in Ikoyi, Lagos State, Nigeria, on 28 March 2019.\n \nThe Honourable Justice Muslim S. Hassan ruled that the Company's acquisition (through its wholly owned subsidiary Lekoil 310 Limited) of Afren Investments Oil and Gas Nigeria Limited (\"AIOGL\"), the holder of the 22.86 per cent. participating interest in OPL 310, requires Consent. As previously announced, the Company sought this Consent from the Minister in 2016, but as yet it has not been forthcoming.\n \nThe Judge further stated that the Executive Order issued by the Nigerian Acting President in 2017, which should have deemed the Consent to have been granted, could not supersede the powers of the Minister to grant such Consent. More specifically, the Judge disagreed that the Consent could be deemed granted and obtained in default which the Company believes is contrary to the provisions of the Executive Order. The Judge further noted that the Executive Order was signed in 2017, while Lekoil's application for the Consent was made in 2016 and so could not be applied retroactively. The Judge stated that due process for the Consent application would have to be followed prior to any Consent being deemed.\n \nThe Judge further ruled that the Sale and Purchase Agreement executed by and amongst Lekoil 310 Limited, Afren Nigeria Holdings and the administrators for the purchase of AIOGL was inchoate based on the fact that Consent is pending. The Judge also ruled that pursuant to Articles 13.1.4 and 13.1.5 of the JOA between Optimum and AIOGL, Optimum's consent was required to complete the assignment of Consent.\n \nThe implication of this judgment is that the 22.86 per cent participating interest in OPL 310 is ...