SacOil, an independent oil and gas company, has entered into a settlement agreement, with Nigdel United Oil Company Ltd, relating to the SacOil’s legacy involvement in Oil Prospecting License (OPL) 233 in Nigeria. Accordingly, both parties have withdrawn their respective litigation and arbitration claims, Your Oil and Gas News reported.

OPL 233 was re-categorized as an asset held for sale as of February  2015, and consequently SacOil had the right to be refunded for all costs expensed on the license. Since the case has been settled, SacOil has no future commitments and obligations associated with the appraisal of OPL 233, according to Ecofin Agency.

SacOil is a South African based oil and gas company, dual-listed on the JSE and AIM. The company has a diverse portfolio of assets spanning production in Egypt, exploration and appraisal in the Democratic Republic of Congo, and midstream projects including crude trading in Nigeria and a terminal project in Equatorial Guinea.

This comes as the Governor of the Central Bank of Nigeria, Godwin Emefiele, had announced that Nigeria would sell off some of the Nigerian National Petroleum Corporation’s (NNPC) and Nigeria LNG Limited’s (NLNG) oil and gas assets to help revive the country’s economy, with an expected yield of $10b.