- The Gambian government settles with BP
- Receives D1.5 billion outstanding commitment
The Gambian government has announced successful negotiations with British Petroleum (BP) on the outstanding commitment to its exploration license with the Gambia. BP has amicably settled its D1.5 billion outstanding financial commitment to the government.
The Gambia had, in 2019, entered into a Petroleum Exploration Development and Production License Agreement with BP. The agreement was for two years. The obligations under the agreement included ”the acquisition and reprocessing of 2D and 3D seismic data, conducting an Environmental Impact Assessment and drilling one exploration well,” the government said.
In 2020, due to the pandemic, BP suspended its plans to drill. However, in July 2020, BP informed the Ministry of Petroleum and Energy that it would not drill the exploration well in the A1 Block due to a change in its corporate strategy towards low carbon energy.
”In accordance with the license terms, if there are unfulfilled obligations, BP will be obligated to pay the Government the difference between the agreed work commitment and the performed work commitment,” the government said.
BP subsequently undertook the outstanding amounts of 1.5 billion dalasi and the balances of Training, Resources and Rentals due to the Gambia Government.
”The Gambia Government wishes to thank BP for their collaboration in amicably settling the matter and hopes to work with them in future. The government expresses thanks to the staff of Gambia Petroleum Ministry, Commission and GNPC, the Ministries of Justice and Finance, as well as their partners, such as the African Legal Support Facility and Consortium of Consultants (Addleshaw Goddard, DLA Pipers, Open Oil and Ric Weighman) for the supports,” the statement read.