RE: Email - Share it or Forget it!21 May 2019 09:14
Agamore is nothing but a nuisance. The issue goes back to 2008 when the PSC was issued. Essar Global had committed to build a very large refining and petro chemical complex in Nigeria in 2005 which they subsequently reneged on. We believe Agamore was originally related to this venture.
When the Essar Nigerian sub was awarded the PSC they were told they had to have an Indigenous partner. They signed a letter agreement with Agamore, under English law to be adjudicated in English courts, in anticipation of being awarded the PSC. Under the agreement Agamore was to seek and be granted an assignment in the PSC within 60 days of its issuance. They were rejected by both the DPR and NNPC. They tried again in 2010 and were again rejected. There it sat until 2017.
We were aware of the letter agreement when we took control of Essar Nigeria. Essar Groups own legal dept had recommended some years previously it be formally terminated. Essar Nigeria under our control formally terminated it in the spring of 2017 for none performance by Agamore due to their rejection twice by the DPR and NNPC. They had 30 days contractually to respond, which they did not.
In May of 2018 they launched a suit in Nigeria against Essar Nigeria, ShoreCan, myself, Tunde Karim, the DPR (the Energy Minister who is President Buhari) and NNPC. In June we were asked by the DPR and NNPC to enjoin in our defence. This we agreed as we were informed by them the Agamore would never be assigned an interest and the 2008 and 2010 decisions by them would remain.
Our groups response to the suit primarily was and is jurisdiction. The original Agamore agreement clearly states it was done under English law to be prosecuted in English courts first under arbitration. As such the Nigerian Courts have no authority.
Agamore objected to the enjoinment of the DPR and NNPC to a common defence. The Judge in April threw out this objection with very strong language. This month, the court will hear arguments regarding the principle issue of jurisdiction. If we were in English courts, the Judge would rule quickly in our favour. Our Nigerian QC expects the Judge to rule in our favour but reserve decision for a month because that's what they do.
This all said they Agamore does not have a leg to stand on in Nigeria or here in the UK. They did not meet their obligations in 2008 or again in 2010. They have no friends in government as there is no upside in suing the President. Just look at the recent Lekoil debacle as an illustration.
The Monday morning quarterbacks can speculate all they want. There is no risk, just a nuisance factor.
I hope this explanation is sufficient.
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