Agamore?28 Aug 2018 16:51
Whilst we await news , have been sifting the documentation…far as I can see we have a case from Agamore for spuriously claiming 37 % of OPL 226 next week??
Art seems pretty confident it’s BS, anyone else have more on it?
‘On 7 May 2018, the Company received information that, notwithstanding that the contract provided for disputes
to be pursued by way of arbitration, to be held in London, that Agamore had raised an action in the Nigerian
courts against Essar Nigeria, ShoreCan (including two of ShoreCan’s directors), the NNPC and the Department
of Petroleum Resources (“DPR”). An originating summons was filed in the Federal High Court of Nigeria
pursuant to which Agamore sought various declaratory orders and injunctions but did not seek any fiscal
quantum for damages other than for costs incurred in relation to the litigation. Accordingly, the potential claim
cannot be quantified. Most notably declarations were sought, among others, that (i) the termination by Essar
Nigeria was null and void (2) the assignment to Agamore of the 37% participating interest was given for
valuable consideration and therefore irrevocable unless upon surrender of such interest by Agamore or mutual
termination of the Farm In Agreement and that (3) pending requisite governmental approval to the assignment
interest, Agamore’s equitable right to the 37% interest subsists.
The Company considers the action as spurious, vexatious and ill-founded. Counsel have been instructed and
motions to have the action dismissed have been filed. The case was initially heard on 5 June 2018, however,
Agamore’s lawyers failed to appear at the hearing. The case was continued until 29 July 2018 where Agamore’s
lawyers did appear in person at the hearing but the hearing was again continued to 5 September 2018 as the
judge noted a technical failure on the part of Agamore to serve the action properly on one or more of the
defendants. The NNPC and DPR have requested ShoreCan’s lawyers also represent them to seek dismissal of
the action. NNPC and DPR make clear in their instruction correspondence that they have not approved any
assignation of an interest to Agamore and do not recognise it as having any title interest in OPL 226. With all
defendants including the Nigerian governmental agencies considering the action to be ill-founded, the Company
remains confident that the action will be dismissed in due course.’
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