The signing comes after three years of legal battle between The Gambia government and African Petroleum Gambia Limited at the International Centre Settlement in the United Kingdom.
The signing ceremony held at Petroleum House brought together ministers of Energy, Justice, Finance and Economic Affairs and their UK-based counterparts.
Minister of Energy and Petroleum Fafa Sanyang, speaking at the occasion described the signing of the Licence agreement as a historic day for the country.
He highlighted that the processes leading to the settlement of the dispute and the subsequent luring of PetroNor was not an easy one.
Minister Sanyang added that the contentious legal matter threatened Gambia government control over certain offshore oil exploration blocks.
Hon. Sanyang said PetroNor had twelve months to fulfill the conditions precedent for the licence to be effective and meet the conditions or risk termination.
Minister of Justice Dawda Jallow said the terms of the agreement are favourable to Gambia government from financial, legal and technical standpoint.
Mr. Ebrima S Camara, managing director of GamFarming & Machinery Company Ltd. and Petronor’s local representative in The Gambia expressed appreciation on efforts shown by both parties in reaching a mutually beneficial settlement.
Meanwhile, Africa Petroleum Gambia Limited on 17 October 2017 took The Gambia to an International tribunal court of arbitration dubbed ICS after The Gambia government terminated its contract which APGL insisted to still having legal contract with the country.
APGL was demanding a compensation of more 100,000 million dollars from The Gambia but the country, however, stood its ground which ensued the two parties enter into mutual agreement and end the three-year case.
