Lekoil Nigeria Limited (LNL) says it has reached an agreement with Lekoil Limited (Lekoil Cayman), a Cayman Islands-based litigation asset company with an investment in oil and gas assets in Nigeria, to terminate all legal proceedings and settle all claims made by or between the parties.
The parties have been in dispute since early 2020 in connection with the rights of Lekoil Cayman under the shareholder’s agreement in respect of the company and the various inter-company loans granted by Lekoil Cayman to LNL and its related entities.
According to a statement on Thursday, the settlement covers all the disagreements that arose between the two parties and Lekan Akinyanmi concerning the management of Lekoil Cayman and related entities, proprietary interests, liabilities and contractual and non-contractual rights and obligations of the parties.
It said: “To resolve the differences, Lekoil Nigeria Limited, Lekoil Cayman and Akinyanmi, among others, have agreed and entered into a settlement deed.
“The contract will release and discharge all relevant claims, withdraw legal proceedings, surrender of certain shares and other transactions, as well as agree on a new framework for their future relationship.”
The statement said part of the agreement reached will require Lekoil Cayman to change her name and cease using the ‘Lekoil’ name or brand in connection with its continuing business.
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It said Lekoil Cayman has also agreed with Savannah Energy to cancel the option agreement with Savannah Energy, adding that the shareholder’s agreement between LNL and Lekoil Cayman would be terminated.
Aisha Muhammed Oyebode, chairman of Lekoil Nigeria Limited, said: “We are pleased with the amicable resolution of the issues. This agreement illustrates the tenacity and commitment of all the parties to delivering long-term value to shareholders.
“I thank members of the board of Lekoil Nigeria as well as our partners for their understanding and support during the difficult period that we witnessed in the last two years. We remain optimistic about the future and are assured that brighter years are ahead.”
According to the statement, implementation of the arrangements requires the approval of Lekoil Cayman’s shareholders.