Investing.com - Financial Markets Worldwide

UPDATE 3-Equinor says it wins Nigerian case over Agbami oilfield funds

Published 05/02/2021, 12:56
Updated 05/02/2021, 17:06

(Adds court ruling confirmation)
By Libby George
LAGOS, Feb 5 (Reuters) - Nigeria's Supreme Court ruled in
favour of Norwegian oil company Equinor in a long-running case
over profit from its stake in the Agbami oilfield, a copy of the
ruling showed on Friday.
The ruling ends legal proceedings, Equinor spokesman Erik
Haaland said. It alleviates more than 10 years of legal
uncertainty for Equinor and gives it more flexibility in how it
handles the millions of dollars a day generated by its share in
the field.
In a copy of the ruling seen by Reuters, the five justices
ruled unanimously to overturn lower court rulings against
Equinor.
"We are pleased with this decision, which is in line with
our position as well," Haaland said.
Court cases in Nigeria can take decades to work through the
system, delays that can snarl cash flow and hinder company
investment.
Former consultant John Abebe was seeking 1.5% of the profit
from Equinor's 20.21% stake in Agbami, which pumps close to
200,000 barrel per day. At current prices, the stake is worth
roughly $2 million per day.
Abebe said he was not paid for helping the company secure
licences for Nigerian oilfields. A court in 2010 ordered Equinor
to place revenue from the field, millions of dollars a day, into
a specific account in Nigeria. Equinor had lost earlier appeals
of the ruling.
Reuters could not immediately reach Abebe for comment.
Abebe helped Statoil, as Equinor was formerly known, to
secure licences for Nigerian oilfields between 1991 and 1999 and
was on the board of Statoil's local unit. Equinor had said it
already paid him for his services and that it had no agreement
to give him 1.5% of its profit.
Haaland said the company was working with its lawyers to
determine next steps for Agbami and its proceeds.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.