Home Business Shell, Exxon, Others to End Billion Dollar Nigerian Lawsuits

Shell, Exxon, Others to End Billion Dollar Nigerian Lawsuits

5 min read
Comments Off on Shell, Exxon, Others to End Billion Dollar Nigerian Lawsuits
0
45


Shell Plc, ExxonMobil Corp., Chevron Corp. and Equinor ASA plan to withdraw multibillion-dollar lawsuits against Nigeria’s state energy company after finalizing new terms for deep-water oil production in Africa’s largest crude producer.

Article content

(Bloomberg) — Shell Plc, ExxonMobil Corp., Chevron Corp. and Equinor ASA plan to withdraw multibillion-dollar lawsuits against Nigeria’s state energy company after finalizing new terms for deep-water oil production in Africa’s largest crude producer.

Article content

In letters to two New York federal judges on Aug. 22, the oil majors said they had agreed to settle with the Nigerian National Petroleum Co. and will terminate ongoing litigation once the new arrangements take effect. The move came 10 days after the firms renewed leases with the Nigerian government and production-sharing contracts with the NNPC for the permits at the heart of long-running disputes over the allocation of crude.

Article content

Exxon Renews Nigeria Deep-Water Oil Licenses and Contracts

Equinor and Chevron filed a suit in the US four years ago asking a court to enforce a $1.1 billion award issued by an arbitration tribunal against the NNPC in 2015. Shell and Exxon initiated similar proceedings in New York in 2014 over a $1.8 billion arbitration award. Both penalties followed allegations by the majors that the NNPC took crude beyond its entitlement under contracts signed in 1993 that were designed to incentivize the companies to develop deep offshore blocks.

Article content

Lawyers for Equinor and Chevron asked the judge to suspend the case until the end of October “to allow sufficient time for the conditions to be satisfied and for the settlement agreement to become effective.” Once that happens, the companies “expect to withdraw this action,” the letter said. Exxon and Shell anticipate being able to do the same after 60 days, they said in a separate letter.

Exxon, Shell Face Uphill Legal Battle Over Soured Nigerian Deal

The extension of Equinor’s license on Aug. 12 “was an important milestone” that “secures continued production and cash flow,” a spokesman said by email. “All outstanding disputes in Nigeria have also been resolved” as part of the renewal agreement, he said. Shell declined to comment while Exxon, Chevron and the NNPC didn’t immediately respond to requests for comment.

(Updated with Equinor comment in fifth paragraph and a no comment from Shell)



Source link

Load More Related Articles
Load More By James Tisdale
Load More In Business
Comments are closed.

Check Also

kim kardashian getty.jpg

Kim Kardashian took the runway in Milan to close out the show for her collab with Dolce &a…