Canadian Overseas Petroleum Limited (LON:COPL, CVE:XOP) has updated investors on the dispute between partners in its Nigerian venture.
As previously reported, Essar Mauritius is in disagreement with the ShoreCan vehicle, 50% owned by COPL, which owns 80% of the Essar Nigeria business (which in turn holds 100% of the OPL 226 asset, in shallow waters offshore Nigeria).
“The parties have exchanged correspondence setting out their respective positions but no formal proceedings have been issued in respect of the dispute and no other action has been taken by either party,” COPL told investors.
“The correspondence to date has only reinforced the company's view that ShoreCan has several valid defences and counterclaims to any action that might be brought by Essar Mauritius in the event that the current disagreement escalates.”
COPL added that the ShoreCan vehicle continues to pursue the completion of financing initiatives for the project, meanwhile, operations continue for the Essar Nigeria business.
Arthur Millholland, COPL chief executive, said: “We are frustrated with the claims being brought forward by Essar Mauritius, but ShoreCan remains of the view that the allegations brought forward by Essar Mauritius are without foundation or merit.
“We continue to press ahead with our OPL226 project and we will provide further updates in due course."