Investigation finds no foreign bribery law or regulatory breach in Horizon Oil Stanley gas field deal
Questions were raised over a $US10.3m ($14.7m) payment made in 2011 for its Stanley gas field in Papua New Guinea.
Horizon Oil said an investigation concluded it did not breach any foreign bribery laws after questions were raised over the legality of a $US10.3m ($14.7m) payment made in 2011 for its Stanley gas field in Papua New Guinea.
The junior oil and gas producer hired Herbert Smith Freehills and Deloitte to conduct the probe, which found neither a breach of Australian foreign bribery law or any current regulatory investigation.
Horizon had previously indicated in February it would comply with an investigation by the Australian Federal Police if one were to be launched.
The structure and size of the 2011 deal were consistent with market practice and comparable to other transactions at the same time, Horizon said in a statement on Tuesday.
“Horizon confirms that no payments were made in excess of the agreed purchase price and Horizon has no knowledge of any subsequent transfers or transactions made by the counterparties after the purchase price was paid.”
Horizon axed former boss Michael Sheridan on February 28 saying it would be untenable for him to continue in the role amid an investigation, with Chris Hodge succeeding him as chief executive.
Horizon chairman Mike Harding said the company “recognise and regret” the impact of the original allegations.
“The disclosure and publication of company information without seeking to fully understand the facts around a transaction occurring more than eight years ago has caused significant loss to shareholders and cost to the company.”
Arran Energy, an Australian developer headed by two former Oil Search executives, emerged as a new partner of Horizon in February.
Horizon shares rose 9 per cent to 7.5c in early trading Tuesday.
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