The controversial Chevron oil bloc bid round for which
indigenous oil prospecting company, Brittania-U, reportedly made the highest
winning bid of $1.6 billion got messier yesterday with the local firm suing the
multinational oil company for breach of the bid arrangement.
The defendants in the suit were listed as Chevron Nigeria
Limited; Chevron USA, inc; BNP Paribas Securities Corp; Mr. Hermant Patel and
Seplat Petroleum Development Company Limited, all of which are involved in the
transaction of the assets Oil Mining Lease OMLs 52,53, and 55.
According to information from sources close to the Nigerian
National Petroleum Corporation (NNPC) the court injunction has also been served
NNPC management to put it on notice.
The copy that was sent to the organisation by Ricky Tarfa
& Co., the lawyer to Brittania-U said “Our client was the successful bidder
for the 40% interest of Chevron Nigeria Limited, in OMLs 52, 53 and 55 by a
private bid that was conducted between June, 2013 and 14th November,
2013. On 14th November, 2013 final terms of the acquisition
were agreed between our client and Chevron leaving only the execution and
exchange of the Sales and Purchase Agreement between the parties before
perfection of necessary regulatory compliances post agreement.”
The letter, BusinessDay learnt has also put NNPC on notice
that at the expiration of one month from the date of receipt of the statutory
notice, its client shall commence steps to proceed against NNPC by praying to
join NNPC as a co-defendant, along with the existing
defendants in the suit.
The principal claim according to Ricky Tarfa & Co. is to
validate the sale of the three (3) OMLs to its client as against all the
defendants and damages for the injury occasioned by failure of all affected and
liable adverse parties in wrongfully interfering with the process of
formalising and upholding the contract entered into between
Chevron and its client, in respect of the three OMLs.
“For the avoidance of doubt, the reliefs to be sought against
NNPC shall include but may not be limited to perpetual injunction restraining
NNPC from assisting, interfering or wrongfully procuring the breach of the
contract between its client and Chevron in respect
of the OMLs or permitting a third party to procure a
derogation from the contract to the business and reputational prejudice of its
client.
For the avoidance of doubt, details of the reliefs which
shall be extended to NNPC if leave to sue and join it as a co-defendant is
granted are reproduced below:
“(1) A declaration that the final binding offer made by the
plaintiff to the 1st defendant on 14th November, 2013 at the invitation of the
1st defendant in the sum of one billion and fifteen million US dollars
(US$1,015,000.00), for acquisition of the 40% participating
interest of Chevron Nigeria Limited in oil mining leases 52,53 and 56 has been
accepted by the 1st defendant by its conduct, oral and written representation
made thereafter on which the plaintiff relied and acted to its detriment, and
that by provision of the irrevocable standby letter of credit for the sum of
two hundred and fifty million (US$250) opened in favour of the 1st defendant,
to remain in force until 14th September 2014, as part payment; and further
provision of firm letter of commitment by the plaintiffs bankers for payment of
the balance of 765 million US dollars demanded for and duly furnished to the
1st defendant on 15th November, 2013, the parties have entered
into binding contract for the acquisition of the OMLs 52,53
and 55 by the plaintiff from the 1st defendant for valuable consideration.
BusinessDay learnt that the decision to go to court by
Britannia –U followed recent meetings the company had with Chevron, the last of
which was on November 14 at the instance of Ali Moshiri, president, Chevron
Corporation, who directed the Brittania-U management to come with their
bankers, namely First Bank,Diamond Bank and Ecobank, as well as their lawyers
and firm Board commitment letters showing that the banks are ready to fund
Brittania-U’s bid amount.
Sources close to the transaction had earlier told BusinessDay
that these firm Board commitment letters, which are widely regarded as good as
cash in this kinds of transactions, had not been part of the bid process
published by Chevron.
Although Chevron was said to have openly acknowledged
Brittania-U as having submitted the highest bid based on the process
information memorandum which stated that Chevron will sell the blocs as a
composite bid or collective to the highest single bidder and not on individual
bloc basis, the oil major is alleged to be now claiming differently.
Chevron also failed to provide a formal letter to that
effect, but kept prodding Brittania-U to provide bank Board firm commitment
letter.
1 comment:
oil money!!!!!!
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