Aminex said it has resolved a long-running dispute with former Romanian state oil company Petrom over unpaid drilling costs at the Nyuni-1 well off Tanzania.
Petrom has agreed to pay Aminex subsidiary Ndovu Resources $3.4 million in respect of past costs, plus $1.3 million in settlement of all its other obligations as a joint-venture partner in the Nyuni project.
Petrom will have no further rights, obligations or claims under the Nyuni Farm-in and joint operating agreements, but it has been granted an option, expiring on June 30th, 2006, to rejoin the project as a full, paying joint-venture partner.
As a result, Ndovu is withdrawing all legal claims against Petrom in the English High Court.
Petrom, the former state oil company of Romania, is majority-controlled by OMV of Austria.
"This agreement is a very satisfactory outcome to a long running and damaging dispute, resolution of which will enable Aminex to move forward more positively in Tanzania and elsewhere," commented chief executive Mr Brian Hall.