Range Resources Ltd (LON:RRL) told investors it has reached an agreement with Colombia’s Agencia Nacional de Hidrocarburos (ANH) to settle all outstanding claims and disputes between ANH and the consortium of Optima Oil Corporation and the company.
In 2016, ANH sought a US$53mln claim in relation to allegations that work commitments weren’t fulfilled and that invalid letters of credit had been presented.
Range, in a statement, noted that it has worked with its legal advisers and the consortium partners to reach an acceptable outcome.
The settlement agreement confirms that Range and the consortium have no liability for any payments or debts and that all proposed penalties have been lifted.
Additionally, the consortium has agreed to waive all potential claims against ANH.
At the same time, the consortium has agreed to terminate three exploration licences in Colombia (the PUT-5, VMM-7 and VSM-1 areas).
The deal is conditional upon court approval in Colombia, which is expected to take three to six months to obtain.
“Range acknowledges the constructive approach taken by all parties during negotiations and is pleased to have reached a mutually acceptable outcome with ANH,” the company said in a statement.
It added: “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.