Afren recovers over $17 million from former CEO, COO

Afren plc has announced that it has successfully secured, from its former CEO, Osman Shahenshah, and former COO, Shahid Ullah, a cash payment of US$17.1mn in relation to payments made to them that were not authorized by the Board, and as first announced by the Company on 31 July 2014.

In addition, the Company says it has secured a further US$3mn in respect of the costs to the Company relating to independent reviews conducted by Willkie, Farr & Gallagher, KPMG and certain legal costs.

The statement also adds that Mr Shahenshah and Mr Ullah have also granted a non-competition covenant in favour of Afren.

Following the payments the upstream oil and gas exploration and production company has entered in to settlement agreements with the two former executives which release them of claims relating to the unauthorised payments.

That settled Afren has agreed not to pursue legal proceedings against Mr Shahenshah and Mr Ullah in connection with the claims relating to the unauthorized payments.

In October Afren fired the two employees’ after its independent review into the receipt of unauthorized payments by members of management and senior employees found both executives of gross misconduct in particular the receipt of unauthorized payments from third parties.

Afren is currently exploring for oil and gas in a number of countries in Eastern Africa including Kenya, Ethiopia, Madagascar, Seychelles and Tanzania with other exploration assets in other African countries including Nigeria, Ghana,Côte d’Ivoire, Congo Brazzaville and South Africa.