The Supreme Courts sitting in Abuja will tomorrow hear the appeal of the case involving Brittania-U, Chevron and Seplat in respect of sales of Oil Mining Lease(OMLs) 52,53, and 55 which Brittania-U is contesting.
The appeal which was initially slated for hearing for October 6th, 2015 by the court was postponed till Thursday 22,October 2015.
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.
Industry watchers say the case is topical because it impinges on the long standing concerns of local and international investors about the rule of law as relates to policy and business in emerging economies, Nigeria inclusive.
The sale of the assets became controversial after Chevron, in a bid to ensure transparency, put the assets through a public bidding process, 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 Nigeria Limited, 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, in the United States.
The Apex court had in May this year gaiven an injunction against Seplat Petroleum Development Company and Chevron Nigeria Limited, that they should henceforth stop activities relating to the transactions involving oil assets, in Oil Mining Leases ( OMLs) 52,53,55 pending when the hearing of the appeal brought against the two companies by Brittania-U, an indigenous oil company was heard.
The presiding 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, Brittania-U insisted that in spite of the previous court pronouncement, the respondents still went ahead to engage in some transactional activities which negated the admonition of the parties that they should not take steps that would overreach the appeal or the assets in dispute.
Justice Ibrahim Tanko has said that the appeal was ripe for hearing but that it had to be postponed because the case was close to the end of the legal year which would necessitate judges to proceed on annual vacation. Tanko however asked Dodo Damian for an undertaking that his client would not do anything to undermine the court, should the court not able to take on the case before they resumed from vacation.
It was after this that 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 in October 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 lawlessness, 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 6th December 2013 before Brittania –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 then Minister of Petroleum was dated 2nd December 6, 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, however countered 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 was heard. In the letter, the counsel, Dodo had noted that it would take between seven to eight years before the supreme could could hear the appeal.
As the court was not satisfied about the assurances given by the respondent counsel, it then made an order by 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 6th of October 2015 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 bided for and paid the highest amount but which Chevron decided to give to Seplat.
Olusola Bello
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