Home BUSINESS Allied Energy loses oil mining lease over $200 million debt

Allied Energy loses oil mining lease over $200 million debt

1032
0

 

By Ebiowei Lawal

Ads

LAGOS-The High Court sitting in Lagos State has rejected an application filed by the Allied Energy Plc and Camac International (Nig) Ltd seeking mandatory Injunction to stop the Nigerian Agip Exploration Limited (NAE) from reclaiming the Oil Mining Leases (OMLs) 120 and 121 in OYO oilfields located in Nigeria territorial waters, of Onne Port, Rivers State.

In his ruling, after hearing oral and documented address, Justice T. A. O. Oyekan-Abdullai of the Lagos High Court,  on the 8th of March, 2018 said the plaintiff that is indebted to NAE to the tune of $200 million has no right to stop NAE from reclaiming the OML 120 and 121 it sold to it in 2012.

In Suit No. LD/019FRJ/2017, had prayed that though it has not paid the $200 million balance in the purchase agreement but that the court should stop NAE taking back the Oil Mining Lease on the grounds that NAE had transferred to Allied Energy Plc the entirety of its interests and rights in the purchase deal.

The action of Allied Energy and Camac, a Nigerian owned companies, is sequel to the write of attachments issued by a Federal High Court presided over by Justice Hadiza R. Shagari on the 31st of January, 2018 giving NAE the powers to take over the companies’ assets at Oil Mining Leases (OMLs) 120 and 121 including seizure of the crude oil produced from OYO oilfields.

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 to the contractual debt of over $200 million they owe NAE.

But in the case filed against  Nigerian Agip Exploration Limited (NAE), Allied Energy and Camac 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 of Nigeria  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.

It would be recalled that the dispute between the Nigerian Agip Exploration Limited and the Allied Energy and Camac arose from the decision of the London Court of International Arbitration (LCIA) which is being enforced by NAE over a dispute regarding 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 Allied Energy Plc the entirety of NAE’s interests and rights in the two Oil Mining Leases 120 and 121 in the deep offshore region of Nigeria.

According to the Nigerian Agip Exploration Company, Payment of part of the price for the transferred interests and rights was deferred to be paid by Allied Energy to NAE, “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) have also ruled in mid-March 2018 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

Please enter your comment!
Please enter your name here