Jersey Oil & Gas (JOG) has paid $850,000 in a settlement with TGS-Nopec Geophysical Company (TGS).
The payment leaves the North Sea hydrocarbon exploration and production company with some £5 million at the end of December 2020.
TGS had wanted uplift payments from JOG of $1.05million, which was disputed by the company. The money is in relation to an agreement from 9 February 2018 between the parties in respect of licence awards to Jersey Petroleum Ltd (JPL) in the Oil & Gas Authority’s 31st Supplementary Offshore Licensing Round, and JPL’s acquisition of Equinor UK Limited’s 70% interest in Licence P2170 (Verbier).
The dispute led to two hearings in Norwegian courts and resulted in the final settlement.
JOG said that the payment settled a one-off and isolated dispute and that the group’s cash position was £3 million ahead of its initial 2020 budgeted year-end cash balance.
Jersey Oil & Gas is focused on upstream oil and gas in the North Sea including the Greater Buchan Area (GBA) within the Central North Sea. The company says it has an average of 222 million barrels of oil and a new prospect in its acreage. bit.ly/3b5MzuB