Petroceltic issues High Court action against former suppliers
Party, appointed under watch of previous board, seeking $3.4m from Irish oil and gas explorer
Petroceltic chief executive Brian O’Cathain. Photograph: Matt Kavanagh.
The oil and gas explorer said its previous board had entered into agreements with the unnamed parties in 2004 and 2005.
Petroceltic’s move came after one of the parties sent it correspondence threatening legal action and seeking payments of some $3.4 million. The agreements contained provisions under which the parties could make claims for further material payments from the company, Petroceltic said.
Having taken legal advice, Petroceltic said it was informed that the original agreements constituted “a fraud on the company and has consequently issued legal proceedings to have them declared void”.
Petroceltic, whose operations are focussed on North Africa, and the Mediterranean and Black Sea regions, is also seeking to recover what it described as “significant payments” made to the two parties under the agreements during 2005 and 2006.
“The matter has been brought to the attention of the relevant authorities, as well as current and intended future partners and other key stakeholders.”