Femi Folaranmi, Yenagoa
After five years of legal battle, a Federal High Court, sitting in Lagos, has ordered that the Nigerian Agip Oil Company (NAOC) take over the operations of the OYO Field in OML 120 and OML 121 operated by two Nigerian Companies, Allied Energy Plc and Camac International (Nig) Ltd over $200million contractual dispute.
The Court order on the takeover was in line with an earlier enforcement order of the court granted by the Presiding Judge, Justice Hadiza R. Shagari of the Federal High Court, Lagos Division on 11th May, 2017 for recognition and enforcement of a Final Award rendered at the London Court of International Arbitration (LCIA) on 14th February, 2017 in favour of Nigerian Agip Exploration Limited (NAE) against Allied Energy Plc, Camac International Ltd (CIL) and Camac International (Nigeria) Limited (CINL).
According to the judgment of the Court, in the suit numbered FHC/L/CS/625/2017 made available to newsmen in Yenagoa, the order was sequel to the ruling of the London Court of International Arbitration (LCIA) which arose from a dispute on a Sale and Purchase Agreement (SPA) concluded in June 2012 between Nigerian Agip Exploration Limited (NAE) as Seller and Allied Energy Plc as Purchaser.
Under the SPA, Nigerian Agip Exploration Limited had transferred to Allied Energy Plc the entirety of its interests and rights in the two Oil Mining Leases 120 and 121 in the deep offshore region of Nigeria.
Payment of part of the price for the transferred interests and rights was deferred to be paid by Allied Energy Plc to Nigerian Agip Exploration Limited.
Nigerian Agip Exploration Limited filed the arbitration at the London Court of International Arbitration in accordance with the terms for submission to arbitration as provided for in the SPA.
The arbitration was finally concluded on 14th February, 2017 when the Final Award was issued by the arbitrators.
It would be recalled that the OYO field is located about 75 miles off the coast of Nigeria in water depths ranging from 200 meters to 500 meters.
The OYO Field produces into a Floating Production and Offshore Loading Vessel ( FPSO) with a processing capacity of 40,000 barrels per day and a storage capacity of one million barrels of export quality crude oil.
This field is located about 75 miles off the coast of Nigeria in water depths ranging from 200 meters to 500 meters. First oil was achieved in December 2009. The OYO Field will produce into a Floating Production and Offshore Loading Vessel ( FPSO) with a processing capacity of 40,000 barrels per day and a storage capacity of one million barrels of export quality crude oil.