Continental Focus, International Reach

No Movement in ShoreCan/Essar Dispute

Thursday, October 18, 2018

Canadian Overseas Petroleum Limited (COPL) reported that there has been no significant movement in settling the dispute with Essar Exploration and Production Ltd. Mauritius. The dispute is between Essar and COPL’s 50% owned JV company Shoreline Canadian Overseas Petroleum Development Corp. regarding compliance under the Essar Nigeria Shareholders Agreement.

The Shareholder Agreement governs the relationship between ShoreCan and Essar Mauritius in respect of their interests in Essar Exploration and Production Limited (Nigeria) (Essar Nigeria), ShoreCan has an 80% interest in Essar Nigeria, which has a 100% contracted interest in OPL226, which is located in shallow to mid-water offshore Nigeria.

The parties have exchanged correspondence setting out their respective positions, but no formal proceedings have been issued in respect of the dispute and no other action has been taken by either party. The correspondence to date has only reinforced the company’s view that ShoreCan has several valid defenses and counterclaims to any action that might be brought by Essar Mauritius in the event that the current disagreement escalates. In the meantime, ShoreCan continues to pursue the completion of the financing initiatives previously announced for OPL 226 and Essar Nigeria continues to operate as before.

Arthur Millholland, President and CEO, commented: “As previously stated, we are frustrated with the claims being brought forward by Essar Mauritius, but ShoreCan remains of the view that the allegations brought forward by Essar Mauritius are without foundation or merit. We continue to press ahead with our OPL226 project and we will provide further updates in due course.”


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