Business News of 2014-07-01

Battle for Tano Oil Block rages on

An Accra High Court on Monday adjourned to July 7, to continue hearing on the dispute over the ownership of Tano 2A oil block.

Three foreign firms, Clontarf Energy Plc and Petrel Resources and Pan Andean Resources Ltd are engaged in legal tussle over which company has the license to undertake exploratory activities in Ghana’s Tano 2A block, in shallow water offshore.

The courtroom battle has attracted international attention following Ghana government’s move decision to grant a licence to a US company over part of what Clontarf and Petrel believe to be the area covered in their Block Tano 2A agreement.

The importance of the Tano 2A Block to the prospects of Petrel Resources in May forced its managing director, David Horgan, to step aside from his role to focus on bringing the company’s oil block dispute in Ghana to a successful conclusion.

In April, Petrel Resources and Clontarf Energy PLC were granted an injunction in the High Court of Ghana protecting their rights to the Tano 2A exploration block.

They sought the injunction after discovering that a rival rights application by Pan Andean Resources Ltd, which might overlap with a portion of the rights the two companies believe they have on the block, had been ratified.

Clontarf has a 60% interest in the block and Petrel a 30% interest. The companies were seeking confirmation that the rival ratification did not impose on the area covered by the block.