A&V Moruga East IPSC deal delayed

PORT OF SPAIN, November 17, 2017 – A&V Oil and Gas’ USD 19.5-million divestiture of the Moruga East block to China’s Shandong Deshi Petroleum Group has been put on hold, local media reported Friday.

The asset’s sale was initially approved in August 2015, according to Petrotrin chairman Wilfred Espinet. However, the company’s failure to meet the conditions stipulated by the NOC’s board has caused the conditional approval of the transaction to expire, leaving the deal in limbo.

A&V originally entered an agreement with Shandong for the sale of the incremental petroleum-sharing contract (IPSC) associated with the Moruga East block in November 2016. The IPSC is scheduled to run until November 2019.

This complication is the latest in A&V’s continuous troubles. The company is part of an ongoing investigation by Canadian consulting firm Krall at the behest of Petrotrin, regarding discrepancies in oil quantities sold to the state-owned firm.

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