A Federal High Court sitting in Lagos has ordered that the Nigerian Agip Oil Company (NAOC) take over the operations of the OYO Field in OML 120 and OML 121 operated by two Nigerian Companies, Allied Energy Plc and Camac International (Nig) Ltd over contractual dispute.
The court order on the ship take over and seizure is in enforcement of an earlier order of the court granted by Honourable Justice Hadiza R. Shagari of the Federal High Court, Lagos Division on 11th May, 2017 for recognition and enforcement of a final award rendered at the London Court of International Arbitration (LCIA) on 14th February, 2017 in favour of Nigerian Agip Exploration Limited (NAE) against Allied Energy Plc, Camac International Ltd (CIL) and Camac International (Nigeria) Limited (CINL).
According to the judgement of the court, the order was sequel to the ruling of the London Court of International Arbitration (LCIA) which arose from a dispute on a Sale and Purchase Agreement (SPA) concluded in June 2012 between Nigerian Agip Exploration Limited (NAE) as seller and Allied Energy Plc as purchaser.
Under the SPA, Nigerian Agip Exploration Limited had transferred to Allied Energy Plc the entirety of its interests and rights in the two Oil Mining Leases 120 and 121 in the deep offshore region of Nigeria.
Payment of part of the price for the transferred interests and rights was deferred to be paid by Allied Energy Plc to Nigerian Agip Exploration Limited.
According to a senior member of the NAOC legal team, who confirmed the development in a telephone chat, he stated that as a result of subsequent non-payment by Allied Energy Plc of an aggregate sum in excess of 200 million US Dollars despite several demands.
Nigerian Agip Exploration Limited filed the arbitration at the London Court of International Arbitration in accordance with the terms for submission to arbitration as provided for in the SPA.
The arbitration was finally concluded on 14th February, 2017 when the Final Award was issued by the arbitrators.
It would be recalled that the OYO field is located about 75 miles off the coast of Nigeria in water depths ranging from 200 meters to 500 meters.
The OYO Field produces into a Floating Production and Offshore Loading Vessel ( FPSO) with a processing capacity of 40,000 barrels per day and a storage capacity of one million barrels of export quality crude oil.
Allied Energy,owned and operated by a Nigerian, became the first indigenous corporation to hold interests as an operator with a Nigerian deepwater license.
As a member of an international oil consortium, we made the first indigenous discovery in deepwater offshore Nigeria on OPL 210 in 1995.
Allied Energy was the first indigenous independent oil and gas company to develop joint venture partnerships with multi-national energy giants. Allied brought CONOCO and Statoil to the offshore West African energy sector and re-introduced BP to Nigeria.
These partnerships have been responsible for more than $2 billion in investment opportunities in Nigeria since the mid-1990s.
Allied Energy is currently working to develop the OYO Field in OML 120.
This field is located about 75 miles off the coast of Nigeria in water depths ranging from 200 meters to 500 meters. First oil was achieved in December 2009.
The OYO Field will produce into a Floating Production and Offshore Loading Vessel ( FPSO) with a processing capacity of 40,000 barrels per day and a storage capacity of one million barrels of export quality crude oil.
This development consists of two producer wells with one gas injection well and one water injection well to maintain reservoir pressure.