Petroceltic in legal row with its north African business advisers
Published 06/07/2013 | 05:00
PETROCELTIC is embroiled in a legal spat with consultants to its north African business.
The listed oil and gas exploration business has taken legal proceedings in the High Court against two companies it hired to help its north African exploration activities. One of the companies is a law firm.
Petroceltic took the case in response to a threat from one of the companies, which is seeking payment of $3.4m (€2.6m).
Petroceltic says the agreement that allows the company to claim for this money is fraudulent and wants it declared void.
It also wants the return of "significant" payments made to the two companies during 2005 and 2006.
As well as activities in the Mediterranean and Black Sea, Petroceltic has operations in two countries in north Africa. It has had an interest since 2005 in an Algerian gas field that was declared commercially viable last year.
It also has significant assets in Egypt, where it owns a 100pc operating interest in 12 oilfields in the Nile delta, as well as 15 development leases.
It says these assets generate significant cash flow. It also holds interests in other Egyptian locations. The company first entered Egypt in 1998 through the acquisition of an interest in Odyssey Petroleum and built up this stake in 2006.
Petroceltic's announcement had no impact on its share price yesterday, which remained unchanged at €1.65 in early trading.