Non-executive board members part company with the Kurdistan-focused oil explorer

Troubled oil explorer Afren has cleared out its board in an effort to draw a line on a series of scandals.

Egbert Imomoh, chairman of the board, and each of the non-executive directors stood down at the company’s annual general meeting in London, which came a month ahead of a key vote among shareholders to agree on a proposed $300m debt-for-equity swap deal.

“The past year has been an extremely challenging period for Afren,” said Mr Imomoh.

The changes will see David Frauman join the board of the company as non-executive chairman. Mr Frauman has already been working with the company as a consultant.

Alan Linn, chief executive officer of Afren said: “We are confident that the company has a solid plan in place to reset the business on the growth path."

Afren investors have had a torrid year after a payments scandal led to the departure of a host of executives and the oil price collapse piled pressure on the indebted explorer.

Earlier this year the company revealed pre-tax losses of $1.95bn due largely to a $900m impairment charge against falling oil and the write off of its Barda Rash reserves in Kurdistan. The loss compared with a $140m profit in the previous year. Revenue fell to $946 million from $1.64 billion.

Afren was forced to fire its then chief executive Osman Shahenshah and chief operating officer Shahid Ullah in October last year after a review alleged they had received unauthorised payments from third parties.

Shares in Afren closed up 4.5pc at 209p.

Source: www.telegraph.co.uk

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