Woodside pays $13m settlement

Woodside is set to pay $US12 million ($A13 million) to former joint venture partners, ASX-listed Global Petroleum and UK-based Dana Petroleum, after the oil and gas giant settled outside of the English High Court of Justice today.

Dana Petroleum and Global Petroleum entered into legal proceedings with Woodside after the latter pulled out of the joint venture, exploring the Kenyan coast, in which Woodside held a 30 per cent operational stake.

Woodside cancelled its plans to drill a second exploratory well in the project area and terminated its farm-in-agreement with the two companies in 2007.

Dana Petroleum and Global Petroleum considered the move to be a breach of the joint venture agreement and entered legal proceedings to recover losses suffered as a result of the terminated project.

Full statement below:

As previously advised, Global Petroleum Limited ("Global") and joint venture partner Dana Petroleum (E&P) Limited ("Dana") had commenced legal proceedings in the English High Court of Justice against Woodside Energy (Kenya) Pty Limited ("Woodside") as a result of Woodside's decision not to drill a second exploratory well in the project area, offshore Kenya.

The parties have reached a mutual agreement to withdraw from legal proceedings, with a lump sum payment of US$12 million (approximately A$12.98 million) to be received by Dana and Global jointly, apportioned on a 50/50 basis.