Lekoil Nigeria, Lekoil Cayman Find Common Ground on Dispute

Rebecca  Ejifoma

Lekoil Nigeria Limited, an oil and gas exploration and production company and Lekoil Ltd (Lekoil Cayman) have agreed 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 among others under the shareholders agreement in respect of the company, the various inter-company loans granted by Lekoil Cayman to Lekoil Nigeria and its related entities. 

As noted in a press statement it issued at the weekend, the companies have acceded to release and discharge all relevant claims, withdraw legal proceedings, surrender certain shares and other transactions, as well as agree on a new framework for their future relationship.

“The settlement covers all the disputes that arose between Lekoil Nigeria Ltd, Lekoil Cayman and Mr. 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,” the statement read in parts.

According to the firm, 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. 

It added: “Lekoil Cayman has also conceded with Savannah Energy to cancel the Option Agreement with Savannah Energy.

“The shareholders’ agreement between Lekoil Nigeria and Lekoil Cayman will be terminated.”

Commenting on the agreement, the Chairman of Lekoil Nigeria Ltd, Mrs. Aisha Muhammed-Oyebode 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.”

She thanked members of the board of Lekoil Nigeria as well as their partners for their understanding and support during the difficult period in the last two years. 

The chairman emphasised: “We remain optimistic about the future and are assured that brighter years are ahead.

“Implementation of the arrangements requires the approval of Lekoil Cayman’s shareholders.”