29th May 2018 12:15
LONDON (Alliance News) - Oilex Ltd said Tuesday that it has issued a USD3.1 million default notice to Gujarat State Petroleum Corp in regards to the Cambay production sharing contract.
The notice is said to be a consequence of Gujarat State Petroleum's ongoing failure to pay it share of the expenses of the contract.
Under the joint operating agreement, Gujarat State Petroleum can remedy its default by settling the outstanding amounts within 60 days. If not, Oilex can issue a notice where Gujarat State Petroleum will be deemed to transfer its participating interest in Cambay to the non-defaulting parties.
Oilex noted that upping its stake in Cambay to 100% from 45% would assist the company in forming strategic farm-in discussions with third parties, already receiving several informal expressions of interest.
"Whilst embarking on this new chapter towards the development of Cambay, it is imperative the company and its partners are aligned and committed to unlocking Cambay's significant value potential for all stakeholders. After exhausting all reasonable efforts over an extended period, the issue of the EoD Notice is both timely and necessary to move Cambay closer to development. The company has sought and will continue to seek constructive resolution of all matters that obstruct the development of Cambay," said Managing Director Joe Salomon.
Shares in Oilex were up 4.3% at 0.23 pence on Tuesday.
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