Range Resources and partners reach settlement in Colombia dispute

Trinidad and Indonesia-focussed oil and gas company Range Resources has reached agreement with Agencia Nacional de Hidrocarburos to settle all outstanding claims and disputes between ANH and the consortium of Optima Oil Corporation and Range, it announced on Wednesday.

The AIM-traded firm had previously announced in September 2016 that ANH had served a demand notice to the consortium seeking payment of approximately $53m, and had alleged that its actions were a result of various exploration work commitments not being fulfilled and the presentation of invalid letters of credit.

It said the consortium subsequently filed a comprehensive response to the claim.

Over the last 18 months, Range had been working with its legal advisers and the consortium partners to reach an acceptable outcome.

The key terms of the settlement agreement included ANH confirming that Range and the consortium had no liability for any payments or debts, the lifting of all proposed penalties, the consortium agreeing to waive all potential claims against ANH, and the consortium agreeing to the termination of the three exploration licences (PUT-5, VMM-7 and VSM-1).

“The agreement between the consortium and ANH is subject to court approval in Colombia which is anticipated to be received within the next 3-6 months,” the Range board said in its statement.

“Range acknowledges the constructive approach taken by all parties during negotiations and is pleased to have reached a mutually acceptable outcome with ANH.

“Range has no material assets in Colombia and is now commencing the process of closing its Colombian branch office which is anticipated to be completed during 2018.”