By Adama Makasuba & Mariama Njie
The Gambia government has signed a 30-year oil operation contract with PetroNor for two offshore blocks – Blocks A1 and A4. This came after three years of legal battle between Gambia government and African Petroleum Gambia Limited at the International Centre Settlement in the United Kingdom.
The signing ceremony brought together the Ministers of Energy, Justice, Finance and Economic Affairs and their UK-based counterparts.
Speaking at the ceremony held in the Petroleum House, Brusubi, Minister of Justice, Dawda Jallow, said “these are very favourable terms to the government of The Gambia from financial, legal and technical standpoint and we are pleased to have reached a mutually beneficial settlement and the positive implication is lifting to cloud of uncertainty that hung over the process as a result of the Arbitration.”
“On the execution of the A4 License, PN has twelve (12) months to fulfill the conditions precedent for the License to be effective. One of the conditions precedents includes the requirement for PN to provide notice of the government of its intention to continue the License. If PN does not fulfill the conditions precedent within the twelve months after the execution of the License, the License terminates and PN will relinquish all claims,” Justice Minister Dawda Jallow added.
Eyes Alhomoma, Chairman PetroNor, promised his company’s commitment in working with The Gambia government and reiterated that “the license is going to last for 30 years.”
Meanwhile, three years of legal battle between The Gambia government and Africa Petroleum Gambia Limited at an International Tribunal Court of Arbitration – the International Centre Settlement has ended on mutual accord.
Africa Petroleum Gambia Limited on 17 October, 2017 took The Gambia to an International Tribunal Court of Arbitration dubbed ICS after The Gambia government terminated its contract which APGL insisted to still having legal contract with the country.
APGL was demanding a compensation of more than 100,000 million dollars from The Gambia but the country however stood its ground which ensued the two parties to enter into mutual agreement and end the three-year case.
Speaking on the three-year legal battle, Fafa Sanyang, Minister of Energy, said: “I am happy to announce that the three years of arbitration proceedings brought by African Petroleum against the Republic of The Gambia before an International Tribunal is being brought to an end.”
“I am pleased to announce that the settlement of this arbitration brings an end to all the Petroleum license disputes involving The Gambia,” he added.
