LEKOIL, the oil and gas exploration and production company with a focus on Nigeria and West Africa has announced that further to the Company’s announcements on 21 January 2020, 25 March 2020 and 3 April 2020, 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.

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

As previously announced on 21 January 2020, LEKOIL agreed that a 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 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.

“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. We remain aligned and committed to delivering on our joint appraisal ambitions,” Lekan Akinyanmi, LEKOIL’s CEO, commented.

The partnership between LEKOIL and Optimum is a demonstration of the rare synergy and progress that is possible if indigenous companies work together.