10th Oct 2019 12:04
(Alliance News) - Columbus Energy Resources PLC said Thursday it has formally lodged a claim with the Spanish government to recover costs caused by the government's decision not to re-tender the La Lora concession.
In November 2018, the Spanish government notified Columbus that it should decommission the Ayoluengo field at La Lora. Columbus was expecting the government to re-tender the concession and was waiting for the re-tender process since early 2017.
As a result, Columbus is now seeking EUR919,192 in costs.
Columbus Exec Chair Leo Koot said: "The company was disappointed in November 2018 when the Spanish government decided not to re-tender the La Lora concession, especially as we had been led to believe that a new tender would be forthcoming before the end of 2018.
"The company believes it unnecessarily incurred otherwise avoidable costs during the re-tender process - from February 2017 until October 2018 - before the re-tender process was abandoned by the government. We have made a claim to recoup those costs. The company does not expect to incur any material costs in pursing the claim."
Last year, Columbus described its issues in Spain as a "continual source of frustration" due to the "slow pace" at which the authorities have moved to progress the decommissioning of the La Lora concession.
Shares in Columbus Energy Resources were 3.6% lower in London on Thursday at 4.00 pence each.
By Paul McGowan; [email protected]
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