Honorable Fafa Sanyang, Minister of Energy and Dawda Jallow, Attorney General of The Gambia has disclosed that the Government of The Gambia is happy with the outcome of the settlement of an Arbitration case involving State and Africa Petroleum Gambia Limited (APGL).
APGL was licensed in 2006, and given the rights to drill offshore oil blocks within The Gambian territory.
They made this disclosure at the sidelines of the signing ceremony of a new Petroleum agreement deal between The Gambia government and PetroNor, Oslo Axis Oil and Gas Exploration Company on Saturday, 19th June, 2020 at Petroleum House, Bijilo.
“I am happy to announce that the three years of Arbitration proceedings brought by Africa Petroleum against the Republic of The Gambia before an International Tribunal is being brought to an end,” said Minister Fafa Sanyang.
According to him, Gambia government invested a lot of energy and resources to come to the end of a three years protracted Arbitration case, and result achieved due largely to the untiring collective efforts of the government and Ministries of Energy and Justice.
“We mobilized our staff from the Ministries of Energy and Justice who teamed up with highly experienced international lawyers to defend the cases filed against The Gambia. After three years of intensive legal battles, settlement discussions commenced last year with PetroNor, an Oslo Axes stock market listed Oil and Gas Exploration Company, which took ownership of Africa Petroleum,” Sanyang explained.
He added that “While maintaining a strong defense, we continued to negotiate in good faith, which culminated in the agreement reached to terminate the Arbitration and resolve all legal disputes between the parties.”
Justice Minister Dawda Jallow, said the settlement of the Arbitration cases were anchored on favorable terms that has both financial and legally beneficiary to the State, and the government is pleased with the outcome of the settlement.
“These are very favorable terms to the Government of The Gambia from a financial, legal and technical standpoint. We are pleased to have reached a mutually beneficial settlement and the positive implication is lifting the cloud of uncertainty that hung over the process as a result of the Arbitration,” he disclosed.
On 8 September, 2006, The Gambia issued two licenses, to Buried Hill Energy of Canada to conduct petroleum operations with respect to two offshore blocks, namely Alhadullillah Block A1 (“Block A1”) and the adjacent Block A4 (“Block A4”).
With The Gambia’s approval, Africa Petroleum Gambia Limited (APGL) acquired the Licenses, initially obtaining 60% of the participating interests in the Licenses by way of assignment in 2010 and then obtaining the remaining 40% in 2014.
However, nine years later Gambia government ended its contract with the oil and gas company resulting to filing of a suit against The Gambia government on 17th October, 2016, at the International Center for Settlement of Investment Disputes (“ICSID”), in respect of the Licenses” expiry under case references ICSID Case No: ARB/17/38, ARB/17/39, and ARB/17/40 (now consolidated into ICSID Case No: ARB/17/38).