Africa Oil & Gas: Statoil’s equity share of the Agbami field in Nigeria reduced following redetermination

Statoil has received an Expert calculation of revised tract participations for the Agbami field in Nigeria. Assuming implementation, this calculation will result in a reduction of 5.17% in Statoil’s equity interest in the field from 20.21% to 15.04%.

Statoil previously initiated arbitration proceedings to set aside interim decisions made by the Expert. By a decision received by Statoil on 4 November 2015, the arbitration tribunal has declined to set aside the Expert’s interim decisions.

Statoil is currently assessing its position in relation to the Expert’s decision and the decision of the arbitration tribunal.

Statoil has so far made an accrual of NOK 7.5 billion. Assuming implementation in accordance with the Expert ruling, Statoil will have to compensate other equity owners at Agbami of about NOK 1.6 billion in addition to the accrual as of end third quarter 2015. Eventual settlement of any imbalance amount will be made over time through cash-calls issued by the unit operator.(Source: Statoil)