Oil and gasoline firm PetroNor has reached a mutual settlement with the Government of Senegal to droop the arbitration associated to a dispute for 2 offshore blocks.

Location of disputed blocks; Source: African Petroleum

PetroNor stated
on Tuesday that the dispute concerning the Rufisque Offshore Profond (ROP) and
Senegal Offshore Sud Profond (SOSP) blocks was suspended for six months to
attain a passable consequence for all events.

According to
the corporate, a proper request has been lodged with the International Centre for
Settlement of Investment Disputes (ICSID) to droop the method.

PetroNor added
that the settlement to droop the arbitration was preceded by a interval of
progressive dialogue between the corporate and related authorities.

Eyas Alhomouz, chairman of PetroNor E&P, stated: “This is a optimistic improvement that matches PetroNor’s technique adopted because the merger with African Petroleum Corporation to hunt an amicable resolution in The Gambia and Senegal, refocus our sources and create worth for the shareholders.

It additional highlights a willingness of all events to debate affordable settlement options. We thank the related authorities in Senegal for his or her pragmatism in reaching this mutual resolution and hope to make use of this window of suspension to progress our dialogue and attain a agency settlement that advantages each PetroNor and Senegal”.

Dispute with Senegal authorities

The dispute for the 2 blocks began in late 2017 when the SOSP manufacturing sharing contract expired and African Petroleum lodged an utility to enter into the second renewal section of the contract.

In January
2018, formal notices of dispute have been lodged with the Senegalese authorities in
respect of the SOSP and ROP PSCs and the events had three months to resolve
the disputes. After the events have been unable to resolve the disputes within the
outlined timeframe, African Petroleum lodged a request for arbitration paperwork
with ICSID in June 2018.

The difficulty was pushed additional by Senegalese authorities in November 2019 after it included the disputed SOSP block in a licensing spherical protecting all open offshore blocks within the nation.

In associated information, PetroNor E&P determined to take various cost-saving measures in March this 12 months to make sure the corporate is appropriately structured within the present low oil value atmosphere.

The put up Window of suspension for PetroNor’s arbitration in Senegal appeared first on Offshore Energy.

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