Lifeline for AV Oil; lease operator to appeal to Privy Council

A&V Oil and Gas has received a lifeline as state-owned Petrotrin has been restrained from giving effect to the termination of its contract with the lease operator until an appeal is lodged with the London-based Privy Council.

Although three appellate court judges upheld a previous decision of the High Court and Court of Appeal to refuse an interim injunction, it was agreed that no action will be taken by Petrotrin so that A&V Oil can appeal the court’s decision.

Presiding over appeal of the lease operator were Chief Justice Ivor Archie and Justices of Appeal Charmaine Pemberton and Andre des Vignes.

Petrotrin, on December 22, announced the termination of its contract with A&V Oil and Gas.

The lease operator was at the centre of the fake oil scandal at Petrotrin. Petrotrin said the findings of its audit department had been confirmed by an independent, forensic audit conducted by Canadian consultancy firm, Kroll Consulting Canada Company. The Kroll audit was commissioned by Petrotrin’s board of directors.