Lekoil Nigeria Limited, the oil and gas exploration and production company with a focus on Nigeria and West Africa has announced that it has reached agreement with Lekoil Limited (Lekoil Cayman), a Cayman Islands litigation asset company with an investment in oil & gas assets in Nigeria, have agreed to terminate all legal proceedings and settle all claims made by or between the parties.
The parties have been in dispute since early 2020 in connection with a number of matters including the rights of Lekoil Cayman under the shareholders agreement in respect of the Company, the various inter-company loans granted by Lekoil Cayman to Lekoil Nigeria and its related entities.
The settlement covers all the disputes that arose between Lekoil Nigeria Limited, Lekoil Cayman and Mr. Lekan Akinyanmi concerning the management of Lekoil Cayman and related entities, proprietary interests, liabilities and contractual and non-contractual rights and obligations of the parties.
To resolve the differences, Lekoil Nigeria Limited, Lekoil Cayman and Mr Akinyanmi, among others, have agreed and entered into a settlement deed to release and discharge of all relevant claims, withdraw legal proceedings, surrender of certain shares and other transactions, as well as agree a new framework for their future relationship.
Part of the agreement reached will require Lekoil Cayman to change her name and cease using the “Lekoil” name or brand in connection with its continuing business. Lekoil Cayman has also agreed with Savannah Energy to cancel the Option Agreement with Savannah Energy. In addition, the shareholders agreement between Lekoil Nigeria and Lekoil Cayman will be terminated.
Commenting on the landmark agreement, Chairman of Lekoil Nigeria Limited, Mrs. Aisha Muhammed-Oyebode said: “We are pleased with the amicable resolution of the issues. This agreement illustrates the tenacity and commitment of all the parties to delivering long-term value to shareholders.
“I thank members of the board of Lekoil Nigeria as well as our partners for their understanding and support during the difficult period that we witnessed in the last two years. We remain optimistic about the future and are assured that brighter years are ahead.”
Implementation of the arrangements requires the approval of Lekoil Cayman’s shareholders.