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Wednesday 16 March 2016

$1.5bn Oil Mining: Appeal Court Hears Chevron’s Application Nov 22


The Court of Appeal, Lagos division has fixed November 22, 2016 for hearing the appeal challenging the jurisdiction of a Federal High Court to entertain a dispute arising over Oil Mining Leases (OML) 52, 53 and 55 to Seplat Petroleum Development Company Limited. Britannia-U Nigeria Limited had instituted a suit before a Federal High Court, Lagos asking the court to restrain Chevron Nigerian Limited from divesting its interests in Oil Mining Leases (OML) 52, 53 and 55 to Seplat Petroleum Development Company.

The appellate court yesterday fixed November 22, 2016 for hearing of the substantive appeal and refused to entertain an application brought by Chevron asking for stay of proceedings. The court, however, granted the appellants (Chevron Nigeria Limited and BNP Paribas Securities Corp) application for an extension of time to file additional records of appeal.


Britannia-U Nigeria Limited had through its lawyers: Mr. Ricky Tarfa (SAN), and Abiodun Owonikoko (SAN), sued Chevron Nigeria Limited along with four others. The lower court had adjourned the suit sine-die (till further notice) following series of appeals filed by the defendants. The plaintiff (Britannia- U Nigeria Limited) had approached the court seeking for a declaration that by the final biding offer of $1,015,000,000.00 for acquisition of 40 percent participating interest of Chevron Nigeria in oil mining leases 52, 53 and 56 has been accepted by the first defendant. In its statement of claim, the plaintiff stated that the second defendant, (Chevron USA) requested Britannia-U to provide firm Bond commitment letter issued by the plaintiff ’s bankers for payment of the balance of $765million which was complied with. The plaintiff added that its bankers directly paid the money to the second defendant (Chevron Corp.) at their Houston office on November 15, 2013 arguing that with that, it followed that the parties have entered into binding contract for the acquisition of the OMLs 52, 53 and 55 by the plaintiff.

The plaintiff pray the court to hold that its revised bid of One Billion and Fifteen Million US dollars (US$1, 015, 000, 000.00), for acquisition of the 40% participating interest of Chevron Nigeria Limited in Oil Mining Leases 52, 53 and 56 is binding and subsisting. The plaintiff added that by provision of the Irrevocable Standby Letter of Credit for the sum of $250 million representing 15% of company’s initial bid price of $1.667billion, opened in favour of the first/second defendants on September 30, 2013 remain in force. Consequently, the plaintiff is seeking a perpetual injunction restraining the defendants, their servants, agents, privies, proxies from proceeding to invite bids, offering or accepting, negotiating or engage in any transaction or contract calculated or purporting to transfer, sell, farm out, or otherwise charge, encumber deal in, dispose of or divest the 40% participating interest of Chevron Nigeria Limited in Oil Mining Leases 52, 53 and 55 in Nigeria in favor of any person.


Nationalmirroronline

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