Monday 23 July 2018

Three board members leave amid Petroneft peace deal

An engineer works on a Petroneft pipeline in Siberia
An engineer works on a Petroneft pipeline in Siberia
Michael Cogley

Michael Cogley

The long-running battle over board composition between Irish oil and gas firm Petroneft and its largest shareholder Natlata Partners has ended.

Natlata, headed by Russian businessman Maxim Korobov, was seeking the removal of four board members but will now rescind all of the resolutions it was due to put forward at an emergency general meeting yesterday. Mr Korobov has been appointed to the board as a non-executive director while Anthony Sacca and David Sturt have both been appointed as independent non-executive directors.

Meanwhile, David Sanders, Gerry Fagan, and Paul Dowling have all left the board. However, Mr Dowling will remain as the firm's chief financial officer.

Petroneft chairman David Golder said the company was pleased to come to a "workable compromise" with Natlata.

"We feel this is the best way forward for all of the shareholders in the company," he said.

In March Petroneft agreed a deal with Oil India for the financing of a work programme in the Russian-based License 61. However, the deal was subject to the board staying in place.

"The agreement allows the company to implement our recently announced Licence 61 work programme with our partner Oil India along with a new emphasis on business development," Mr Golder said. It is understood both parties reached an agreement that will see Natlata support the motions of the board at both emergency and annual general meetings for the next two years.

Mr Korobov said the company had come to an agreement that suits the best interests of the shareholder. "We look forward to working with the board to develop the business and to bringing our experience in the Russian market to grow the company and increase shareholder value," Mr Korobov said.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business