Oil Mining Licenses: Appeal Court Hears Chevron’s Suit Against Brittania-U

The Court of Appeal, Lagos Division, has fixed June 5, 2017 to hear an appeal filed by Chevron USA Inc. and others, against Brittania-U Nigeria Limited.

The Appellate Court fixed the date, after listening to the submissions of lawyers representing both parties in the suit.

Other Appellants in the suit are BNP Paribas Securities Corp., Mr. Hermant Patel, and Seplat Petroleum Development Company Limited.

In the appeal filed over two years ago, Chevron is challenging the judgement of a Federal High Court sitting in Lagos, which assumed jurisdiction to entertain a suit on the divestment of Chevron’s interest in Oil Mining Licenses 52, 53 and 55.

At the last adjourned date, Brittania-U Nigeria’s counsel, Mr. Abiodun Owonikoko, SAN, told the court about a pending application seeking to dismiss the Appellants' appeal, for want of diligent prosecution, because of failure to transmit the record or file Appellants’ brief.

He said the Appellants filed a motion for extension of time to compile and transmit the record of appeal.

Owonikoko said his client had filed an application to dismiss the appeal, because of the Appellants’ delay in prosecuting the appeal.

The Court awarded N20,000 cost to Brittania-U, after Owonikoko withdrew the motion to dismiss the appeal, after the Appellants' counsel said the record of appeal had been compiled and transmitted.

Brittania-U sued the Defendants (Appellants) over the Oil Mining Leases numbered 52, 53 and 55, sold by Chevron. It also took the matter to the Supreme Court, following the Appeal Court ruling which vacated an order of interlocutory injunction by a High Court, restraining Chevron and Seplat from concluding any deal on the oil leases.

Chevron had offered for sale OMLs 52, 53 and 55, and as is usual, invited bids from interested firms.

The sale of the assets became controversial, after Chevron allegedly failed to make a public announcement of a winner, a reserve bidder and unsuccessful bids.

It then allegedly, turned its back on the highest bidder, Brittania-U, and began to deal with Seplat behind the scene.

Brittania-U went to court to contest Chevron’s action of not declaring it winner, after it posted a $1.67 billion bid for the three assets, an amount later revised to $1.015 billion after both companies’ officials met in Houston, United States.

Seplat was said to have posted a bid of $630 million, for the same assets.