9th Feb 2015 14:36
LONDON (Alliance News) - Taipan Resources Inc Monday said it has started arbitration action against Afren PLC after claims the FTSE 250 oil company breached the joint operating agreement between the two companies' subsidiaries.
The dispute has been launched by Canadian listed Taipan's subsidiary, Lion Petroleum Corp, against Afren's subsidiary, East African Exploration Ltd.
Lion has filed the case against East African Exploration after claiming Afren's subsidiary breached the joint operating agreement for block one in Kenya. Lion Corp has a 20% interest in Block 1, onshore Kenya, whilst East African Exploration holds the remaining 80% and operates the block.
"Taipan claims that among other things, East African Exploration, as operator in Block 1, failed to diligently pursue joint operations or meet minimum work obligations; follow good and prudent petroleum industry practices followed by international petroleum industry operators under similar circumstances; follow agreed contract award procedures; and follow agreed accounting procedures," said Taipan in a statement.
Taipan is seeking a minimum of USD10 million as "restitution for the damages it has suffered as a result of East African Exploration's breaches of contract," said Taipan.
Afren shares were up 4.3% to 9.50 pence per share on Monday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
AFR.L