VAIDS

Tuesday, May 19, 2015

Supreme Court gives injunction against Chevron, Seplat over troubled OMLs 52, 53, 55 sale

The Supreme Court yesterday in Abuja gave an injunction against Seplat Petroleum Development Company and  Chevron Nigeria Limited, ordering that  they henceforth stop activities relating  to the transactions involving oil assets, in Oil Mining  Leases ( OMLs) 52,53 and 55  pending when the hearing  of  the appeal  brought against  the two companies by Britannia-U, an indigenous oil company is heard.
Supreme Court gives injunction against  Chevron, Seplat over troubled OMLs 52, 53, 55 sale 
The hearing of the appeal has been fixed for October 6th, 2015 by the court.

Presiding in the matter, Justice Ibrahim Tanko, specifically extracted an undertaking from the lawyers representing Seplat and Chevron Nigeria Limited, before he gave the injunction against the companies.

The  extraction of  the undertaking from the counsels to the respondents became  necessary when Ricky Tarfa, counsel to the appellant, Britannia-U,  insisted that in spite of the previous  court prouncement,  the respondents still went ahead to engage in some transactional activities negating the admonition of the parties that they not take steps which would overreach the appeal, or the assets  in dispute.

Justice Ibrahim Tanko said  the appeal was  ripe  for hearing  but for the fact that it was coming close to the end of  judicial  year, during which judges would proceed on annual vacation.
Tanko added that  it was decided  two weeks ago,  that the court would not  take on any appeal case until after the vacation.
He however asked Dodo Damian, for an undertaking, should the court not be able to take on the case before they resumed from vacation.
In response to the judge, Damian said the shared purchase agreement between the first and the second respondents had been signed since November29, 2013.
Following this, the  judge directed that all  parties should maintain the status  quo ante, on all  the  blocks, pending  the hearing  of  the appeal, which would come up on October 6, 2015 and  in particular,  in view  of  the appellants motion pending for mandatory restorative order.
“None of the parties should do anything detrimental to the assets”, he said.

Dodo Damian (SAN) representing Seplat, however assured the court that he would  not encourage his client to be lawless, adding  that he  would always strive to  uphold  the integrity  of  the  court and   the  law  profession. “The dignity of the authority of the court is paramount   in my mind at all times”, he said.

He however insisted that his client had already concluded the acquisition as  at  December 6 (2013) before  Britannia –U  commenced the suit at  the  trial  court.
According  to him, the share purchase agreement (SPA) was completed on 29 November 2013 while the application for  the consent of the minister  of Petroleum was  dated 2nd  December, 2013 but was received in the  office of the   Minister on the  6th  of  the same month.

  The submission of Dodo Damian, which the counsel to Chevron Nigeria Limited, Uche Nwokedi (SAN) also adopted, was however countered by Ricky Tarfa (SAN) by referring the court to the letter written by Dodo Damian on 30th July, 2014 where he pleaded with the honourable Minister of Petroleum Resources to proceed and approve the divestment, on the ground that the transaction should not be suspended until the appeal before the Supreme court is heard.
In the letter, Dodo had noted that it would take between seven to eight years before the Supreme Court  could hear  the appeal.

As the court was not satisfied with the assurances given by the respondent’s counsel, it then made an order  restraining the parties from taking   any steps concerning the assets, and that  parties  should maintain status quo ante, pending  the hearing  of the appeal.

The matter was consequently adjourned to the October 6 this year, for definite hearing of the appeal.
Brittania-U had dragged  both Seplat and  Chevron to court over the lack  of  transparency that had attended the  sales  of  the OMLS which  the  company bid for and paid  the highest amount, but which Chevron  decided  to give to Seplat.

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