Aminex said yesterday that it is to receive nearly $4.7 million (€3.6 million) in settlement of a long-running dispute with Petrom, the former state oil company of Romania.

Aminex subsidiary, Ndovu, was in dispute with Petrom over unpaid drilling costs relating to the Nyuni-1 well off Tanzania, which was drilled in late 2003 and early 2004.

Under the terms of the settlement, Petrom, now majority owned by OMV of Austria, will pay Ndovu $3.4 million for past costs due for the Nyuni well. A further $1.275 million will be paid in settlement of all its other obligations as a joint venture partner in the Nyuni project.

As part of the deal, Petrom will have no further rights, obligations or claims under the Nyuni farm-in and Nyuni joint operating agreements.

Ndovu is providing an option, expiring on June 30th, 2006, for Petrom to rejoin the Nyuni project as a full, paying joint venture partner and agreed to withdraw all claims against Petrom in the English High Court.

"This agreement is a very satisfactory outcome to a long-running and damaging dispute, resolution of which will enable Aminex to move forward more positively in Tanzania and elsewhere," Aminex chief executive Mr Brian Hall said.

The Nyuni licence area was acquired by Aminex when it bought Tanzoil in February 2002. Aminex became one of the first exploration firms to venture into the west African country when it began drilling there in 2003, encountering numerous oil and gas shows and establishing the presence of oil in the region.

Late last year Aminex scored another first when it signed a landmark, 20-year agreement with the North Korean government to help develop its petroleum industry.