Chevron versus Brittania-U: Court Hears Case June 5

Thu, Jan 19, 2017
By publisher
5 MIN READ

BREAKING NEWS, Oil & Gas

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THE Court of Appeal in Lagos, has adjourned hearing on the divestment of oil mining leases (OMLs) 52, 53 and 55 by Chevron Nigeria Limited, CNL. The case comes up two and half years after Chevron U.S.A Inc. and others appealed the judgment of a Federal High Court in Lagos, which assumed jurisdiction to hear a suit brought against them by Brittania-U Nigeria Limited over the divestment of Chevron interests in OMLs 52, 53 and 55.

The three-man panel led by Justice J. S. Ikyegh, after listening to the lawyers representing all the parties, fixed June 5, for hearing of the substantive suit.

The appellants are Chevron U. S.A. Inc, BNP Paribas Securities Corp., Mr. Hermant Patel and Seplat Petroleum Development Company Limited.  When the matter came up at the Appeal Court, counsel to the respondent Mr. Abiodun Owonikoko (SAN) told the court of a pending application, praying the court to dismiss the appellants’ appeal for lack of diligent prosecution.

He said the appellants had filed a motion for extension of time to enable it transmit its records of appeal despite that Chevron was the one who filed the appeal.

Owonikoko said his client had an applied for the dismissal of the appeal.

But the appellants counsel, Mr. Etuwewe said the court did not oppose the application.

The court granted the appellants’ counsel’s request. It awarded N20, 000 in favour of Brittania-U Nigeria.

Brittania-U Nigeria had approached the Federal High Court, Ikoyi, Lagos, asking it to declare that by the final binding offer made by the plaintiff to the first defendant on November 14, 2013 at the invitation of the first defendant for US$1, 015, 000, 000, to acquire 40 per cent of Chevron Nigeria’s interest in Oil Mining Leases 52, 53 and 56, has been accepted by the first defendant by its conducts, representations on which the plaintiff relied and acted to its detriment, and that by provision of the Irrevocable Standby Letter of Credit for $250million opened in favour of the first defendant, to remain in force until September 14, 2014 as part payment; and further provision of firm letter of commitment by the plaintiff’s bankers for payment of the balance of $765million demanded for and duly furnished to the first defendant on November 15, 2013 the parties have entered into binding contract for the acquisition of the OMLs 52, 53 and 55 by the plaintiff from the first defendant for valuable consideration.

Besides, the plaintiff prayed the court to declare that the demand by the first defendant on November 14, 2013 that the plaintiff asked its bankers to furnish firm commitment for payment of its final binding offer for about $1.15 million, for the acquisition of the 40 per cent  interest of Chevron Nigeria in Oil Mining Leases 52, 53 and 55 amounted to a counter offer to plaintiff’s final binding offer, which the plaintiff accepted on November 15, 2013, when it provided same to the first defendant for payment of the balance of $765 million in addition to the Irrevocable Standby Letter of Credit for  $250million opened in the favour of the first defendant, to remain in force until September 14, 2014 by reason  the parties have entered into binding contract for the acquisition of the OMLs 52, 53 and 55 by the plaintiff from the first defendant for valuable consideration.

  • An order in the alternative to the relief above granting special damages against the first and second defendants in $10,935,100 or as the court may adjudge fair and equitable as the enterprise value lost by the plaintiff for failure or breach of the contract of acquisition of the 40 per cent participating interest of the first defendant in OMLs 52, 53 and 55 in Nigeria stipulated in the Irrevocable Standby Letter of Credit and the Bid Process Document pursuant to which the parties conducted the sale.
  • Exemplary damages in $1billion for the wrongful interference by the second to fifth defendants acting in connivance or collusion with first defendant to unjustly prejudice and frustrate the contractual relationship between the plaintiff and the first defendant by making illegitimate and unauthorised use of sensitive business and proprietary information disclosed by the plaintiff in support of its bid to acquire the first defendant’s OMLs 52, 53 and 55 and which information were known by the second to fifth defendants to have been so disclosed in strict confidence and solely for the purpose of supporting the plaintiff’s bid but which were divulged to third party leading to huge business losses and reputational damage to the plaintiff.
  • An order of perpetual injunction restraining the defendants, their servants, agents, privies, proxies, fronts, staff hirelings howsoever called 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 per cent participating interest of Chevron Nigeria in Oil Mining Leases 52, 53 and 55 in Nigeria in favour of any person or entity in derogation from or in disregard of the agreement entered into between the plaintiff and the first defendant on November 14 and 15, 2013, whereby the parties entered into binding contract for the acquisition of the OMLs 52, 53 and 55 by the plaintiff from the first defendant for $1.15 billion.—  Nation

—  Jan 19, 2017 @ 13:40 GMT

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