Pancontinental Namibia announced that it has received a cash call claim in the amount of $552,897 from Tullow Oil. The claim, which was received mid-December, resulted from alleged costs sustained by Tullow during the operatorship of the Namibian license, PEL 37, Ecofin Agency informed.

Tullow claims the amount represents 35% of operatorship costs supposedly incurred by the company during the 2014, 2015 and 2016 calendar years. The costs are regarding common exploration costs, exploration license management, Tullow’s local office costs, and non-project general exploration, reported Offshore Energy Today.

“This claimed adjustment was made without any prior consultation with Pancontinental,” the company said. Pancontinental also stated it would be seeking full and complete details from Tullow regarding the issue. Pancontinental added that the claim by Tullow was made based on an adjustment to the joint venture accounts resulting from an internal review of costs incurred since 2014. Thus, Tullow believes it gives the company the right to issue the cash call.

The Namibian license PEL 37 has the potential for joint prospective resources of over 900m barrels of oil recoverable. Tullow operates the license, with a drilling campaign required to commence by March 2017.