Interoil Colombia E&P (Interoil Colombia) is pleased to announce that it has reached an agreement with the National Hydrocarbons Agency of Colombia -Agencia Nacional de Hidrocarburos- (ANH) to settle all outstanding claims and disputes between Interoil Colombia and the ANH concerning the Exploration and Production Contract No. 68, Block COR-6, dated May 3, 2011 (the "COR-6 Contract"). The settlement includes a termination of the COR-6 Contract by mutual agreement and a mutual waiver and definitive release of the parties to make any claim with regard to the COR-6 Contract.
This settlement terminates the dispute concerning the COR-6 Contract and its termination by resolutions of the ANH alleging a default of Interoil Colombia, a controversy that lead Interoil Colombia to file on July 21, 2017, an arbitration complaint before the Centre of Conciliation and Arbitration of the Bogota Chamber of Commerce -Centro de Conciliación y Arbitraje de la Cámara de Comercio de Bogotá- with the view of resolving the dispute.
The settlement has been reached following the filing of the arbitration complaint and of the response made by the ANH and in the context of the invitation addressed to the parties by the Arbitration Tribunal acting in the case to explore a termination of the dispute by conciliation. The Arbitration Tribunal also summoned the parties to a conciliation hearing called for June 6, 2018.
The parties actively worked with their respective counsels to find a satisfactory outcome of the conflict and eventually agree on the terms of a mutually acceptable resolution.
By means of the agreement all claims of the ANH against Interoil Colombia concerning the COR-6 Contract are terminated, including any claims concerning damages and enforcement of related guarantees. Likewise, Interoil Colombia waives all claims against the ANH concerning the COR-6 Contract, which is terminated by mutual agreement with a mutual release of the parties relating to such contract.
The Parties filed this agreement with the Arbitration Tribunal and attended on June 6, 2018, the conciliation hearing called by the tribunal.
The agreement is subject to the resolution of the Arbitration Tribunal which is expected to be issued within the month of June, 2018.
Interoil acknowledges the constructive approach taken by the parties during the process and negotiations aimed at resolving the differences and is pleased to have reached a mutually acceptable outcome with ANH.
Interoil Exploration and Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America. The Company is the operator of several production and exploration assets in Colombia. Interoil currently employs approximately 60 people and is headquartered in Oslo.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.