Petrotrin’s Board of Directors has revealed that the Company has given notice of the termination of contract to the lease operator associated with the discrepancies in the reported oil production and actual receipts revealed by its Internal Audit Department earlier this year.
Last month, Petrotrin reported that its Audit Department’s findings had been confirmed by an independent, Board-commissioned, forensic audit conducted by Canadian consultancy firm Kroll Consulting Canada Co.
Another report, from global oil and gas consultants Gaffney Cline, had also advised that the reservoir from which the oil had been produced was incapable of yielding the reported volumes.
In a media release this afternoon state owned Petrotrin said it gave written notice of termination to the lease operator this week after it communicated its findings to the operator, giving them an opportunity to respond.
Petrotrin’s Chairman, Wilfred Espinet, said that while some commentators have expressed concern at the rate of Petrotrin’s progress in the matter, it was critical that the Board act only after careful consideration of all relevant matters, including the response of the lease operator to the findings.