Victoria Oil & Gas plc (VOG) has reached a settlement agreement with RSM Production Corporation over the Logbaba gas project in the port city of Douala, Cameroon.
JOINT INTERESTS
VOG’s wholly owned subsidiary, Gaz du Cameroun SA, is the onshore gas producer and distributor.
RSM is joint interest owner with a 38% working interest, alongside the company and the National Hydrocarbons Corporation of Cameroon.
COSTS
VOG and RSM have now dismissed the United Nations Commission on International Trade Law hearing which was due to commence this week in London.
The settlement involves certain accounting policies and procedures, the clarification of certain decision-making processes, and an agreement on the amount of monies payable to RSM.
“This hearing and the inevitable follow-up would have likely cost the company a substantial amount in legal costs alone, whilst the amounts under dispute were material,” said VOG in a statement.
ICC HEARING
The International Chamber of Commerce arbitration hearing took place in April of this year with the award yet to be issued.
LEGACY ISSUE
VOG chief executive Roy Kelly added that the settlement had avoided the unnecessary expenditure of time, cost and human resources both during the hearing and the inevitable follow-up.
“This removes another legacy issue and overhang on the company and allows management to concentrate on more value-enhancing activities.”