Lekoil said it has reached an agreement with Optimum Petroleum Development Company, the Operator of the OPL 310 License, on deferring the final tranche of payment of US$7.6 million due on or before 2 May 2020.

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Lekoil, an oil and gas exploration and production company with a focus on Nigeria and West Africa, stated that this is furtherance to its announcements on 21 January 2020, 25 March 2020 and 3 April 2020.

Speaking on the agreement, Alhaji Yusuf N’jie, Managing Director, Optimum Petroleum Development Company said: “The current challenges in the oil industry – the unprecedented supply and demand shock brought on by the COVID-19 pandemic, requires true partnership and collaboration and we are pleased to work with LEKOIL in this regard.”

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Over the years, LEKOIL and Optimum have worked together to develop OPL310, located on the Dahomey Basin.

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As previously announced on 21 January 2020, LEKOIL agreed that final payment of US$9.6 million, in aggregate, would be made to Optimum to cover sunk costs and consent fees.

This final payment was to be made in two tranches with the first payment of US$2.0 million completed as announced on 3 April 2020.

For the second and final payment of US$7.6 million, Optimum and LEKOIL have agreed on a deferred payment schedule as follows: the sum of US$1.0 million to be paid on or before 15 July 2020; the sum of US$2.0 million to be paid on or before 2 September 2020, and the sum of US$4.6 million to be paid on or before 2 November 2020.

Commenting on the development, the Chief Executive Officer of Lekoil, Lekan Akinyanmi, said: “We would like to thank Optimum for their continued support and understanding during these challenging times for the oil and gas industry and the global economy.

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“We remain aligned and committed to delivering on our joint appraisal ambitions. The partnership between LEKOIL and Optimum is a demonstration of the rare synergy and progress that is possible if indigenous companies work together.”

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