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 deepwater oil production in Africa’s largest crude producer.
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.
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.
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.
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 and Chevron declined to comment while Exxon and the NNPC didn’t immediately respond to requests for comment.
Latest Stories
-
Passengers appeal to transport operators to officially announce new fares
2 mins -
Damongo: About 400 NPP Members resign over Minister’s alleged meddling in chieftaincy affairs
27 mins -
Next NDC government will pay special attention to women – Naana Opoku-Agyemang
36 mins -
Amerado is singing and it’s good he’s doing that – Lyrical Joe
45 mins -
NDC government will establish a Women’s Development Bank – Prof Opoku-Agyemang
52 mins -
My selection is an affirmation of your belief in women – Naana Opoku tells Mahama
59 mins -
Our ticket will be a pair of experienced individuals – Mahama assures
1 hour -
NDC officially outdoors Prof Naana Opoku-Agyemang as running mate
1 hour -
+233 hosts Int. Jazz Day concert on April 30
1 hour -
Farmer arraigned over threat of death
2 hours -
Education Minister unveils new uniforms for basic schools
2 hours -
8th Ghana CEO Summit scheduled for May 27
2 hours -
Leaked intimate video has severely embarrassed me; I’m sorry – Serwaa Amihere
2 hours -
Poll results alone don’t constitute victory for any political party- Asiedu Nketia cautions NDC
4 hours -
Gyakie spills truth on her journey to fame
4 hours