Taipan Resources seeks at least $10 mln damages from Afren over Kenya project

TAAT Global Alternatives

09/02/2015 17:01

LONDON, Feb 9 (Reuters) - Africa-focused oil explorer Taipan 
Resources  TPN.V  is seeking at least $10 million in damages 
from EAX, its partner in a Kenyan oil field and a subsidiary of 
London-listed oil firm Afren  AFRE.L . 
    Taipan's Kenya-based subsidiary Lion Petroleum said on 
Monday it had opened an arbitration case against EAX for 
breaching certain conditions of a joint operating agreement, 
including contract award procedures and accounting procedures. 
    "Afren believes that the claim has no grounds and the 
company will defend its position," an Afren spokesman said. 
    Taipan Resources owns 20 percent of the Block 1 oil field 
licence in Kenya, while Afren holds the rest. 
    In its latest results update in October, Afren said it had 
started seismic operations on the block and that drilling work 
would start after analysing the data. 
    The lawsuit, which was filed on Monday in England, adds to 
Afren's problems after credit ratings agency Fitch warned last 
month of the company's imminent default.  ID:nL4N0V62WM  
    Afren dismissed its founder and chief executive in October 
after a review by law firm Willkie Farr & Gallagher found that 
they had received "unauthorised payments".  ID:nL4N0SP4RJ   
    Afren is currently the target of a takeover, with a Feb. 13 
deadline looming for Nigeria's Seplat Petroleum Development Co 
 SEPLAT.LG  to make a firm offer or walk away.   
 
 (Reporting by Karolin Schaps; Editing by Mark Potter) 
 ((karolin.schaps@thomsonreuters.com; +44)(0)(207 542 6622; 
Reuters Messaging:  karolin.schaps.reuters.com@reuters.net)) 
 
Keywords: TAIPAN RESOURCES AFREN/LAWSUIT