Court rejects firms’ bid to recover seized oil wells

A bid by two indigenous companies, Allied Energy and Camac, to stop the seizure of their assets by the Nigerian Agip Exploration Limited (NAE) has collapsed at a Lagos High Court.
Both companies filed an application seeking Mandatory Injunctions to compel NAE to, among others, write a formal letter to the Deputy Chief Registrar (Sheriff) of the Federal High Court, Lagos and Port Harcourt Divisions to discontinue the execution carried out at the instance of  NAE on the 31st of January 2018
The action is sequel to the right of attachments issued by the Federal High Court and executed against the companies’ assets at Oil Mining Leases (OMLs) 120 and 121.
It also includes the seizure of the crude oil produced from OYO oilfields, following an earlier enforcement order of the Federal High Court, Lagos granted by Justice Hadiza R. Shagari on 11th May, 2017 in Suit No.
FHC/L/CS/625/2017 and upheld by the court on 16th January 2018.
According to the Federal High Court, the order was for recognition and enforcement of a Final Award rendered at the London Court of International Arbitration (LCIA) on 14th February, 2017 in favour of NAE against Allied Energy Plc, Camac International (Nigeria) Ltd and their parent company, Camac International Ltd (CIL) in respect of a contractual debt of over $200 million owed by them to NAE.
But in the case filed against  NAE, the two companies applied for the Mandatory Injunction to remove all locks, chains and restraints of whatsoever nature on the export valves aboard the Vessel FPSO Armada Perdana located offshore within Nigeria territorial waters, off Onne Port, Rivers State, as well as  on Oil Mining Lease No. 120 and Oil Mining Lease No. 121 (OML) 121) including all crude oil produced from OYO fields discharged into the vessel FSPO Armada Perdana.
In his ruling however,  after hearing oral and dumental addresses,  Justice T. A. O. Oyekan-Abdullai of the Lagos High Court,  on the 8th of March, 2018 and in Suit No. LD/019FRJ/2017, refused the prayers.
The dispute arose from the decision of the arbitration award of the London Court over a Sale and Purchase Agreement (SPA) concluded in June 2012 between NAE as Seller and Allied Energy as Purchaser, in which NAE had transferred to  the latter, the entirety of its interests and rights in the two Oil Mining Leases 120 and 121.
According to NAE,  payment of part of the price for the transferred interests and rights was deferred. “As a result of subsequent non-payment by Allied Energy Plc, NAE filed the arbitration at the London Court of International Arbitration in accordance with the arbitration terms provided in the SPA”
” The arbitration was finally concluded on 14th February, 2017 when the Final Award was issued by the arbitrators awarding sums in excess of $200 million in favour of NAE against Allied Energy, Camac and their parent company, Camac International Limited.”
In another development, a federal court in Texas,United States of America(USA) has also ruled in favour of two drilling firms Transocean Offshore Gulf of Guinea VII and Indigo Drilling’s claim for $14 million against Erin Energy.
The claims arose from unpaid bills in respect of work which they carried out on OML 120 and 121, offshore Nigeria. This followed Erin Energy’s failure to pay an arbitral award issued in favour of the drilling firms by an arbitral court under the supervision of the London Court of International Arbitration (LCIA).

Leave a Reply