Lekoil Limited (Lekoil Cayman), a Cayman Islands litigation asset company with an investment in oil and gas assets in Nigeria, has stated that it and Lekoil Nigeria Limited have achieved an agreement to end all legal processes and resolve any claims made by or between the parties.
Since the beginning of 2020, the parties have been at odds over a number of issues, including Lekoil Cayman’s rights under the shareholders agreement with regard to the firm and the many inter-company loans it has given to Lekoil Nigeria and its connected organizations.
The agreement resolves all disagreements that the parties had with regard to the management of Lekoil Cayman and associated entities, proprietary interests, liabilities, and the parties’ contractual and non-contractual rights and obligations. These disagreements involved Lekoil Nigeria Limited, Lekoil Cayman, and Mr. Lekan Akinyanmi.
Lekoil Nigeria Limited, Lekoil Cayman, and Mr. Akinyanmi, among others, have agreed and entered into a settlement deed to release and discharge of all pertinent claims, withdraw legal proceedings, surrender of certain shares, and other transactions, as well as agree a new framework for their future relationship, in order to resolve the issues.
As part of the settlement, Lekoil Cayman will have to alter her name and stop using the “Lekoil” moniker or brand in connection with her ongoing operations. Savannah Energy and Lekoil Cayman have likewise decided to cancel their option agreement. Additionally, Lekoil Nigeria and Lekoil Cayman will end their shareholders agreement.
Mrs. Aisha Muhammed-Oyebode, Chairman of Lekoil Nigeria Limited, commented on the agreement: “ 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 continued: “I thank members of the board of Lekoil Nigeria as well as our partners for their understanding and support during the difficult period that we witnessed in the last two years. We remain optimistic about the future and are assured that brighter years are ahead”.
The shareholders of Lekoil Cayman must, however, approve the arrangements before they can be put into effect.