Agip set to reacquire former oil block OML 120
There are indications that the Nigeria Agip Exploration Limited, would soon take over Oyo Oilfield in Oil Mining Lease (OML) 120 following an order of a Federal High Court Sitting in Lagos.
The Federal High Court recently enforced and recognized a final award rendered at the London Court of International Arbitration (LCIA) in favour of the Italian company to take over the oil field after five years of legal dispute with two Nigerian Companies – Allied Energy Plc, and Camac International (Nig.) Limited.
The Court order on the takeover was in line with an earlier enforcement order of the court granted by the Presiding Judge, 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.
According to the judgment of the Court, in the suit numbered FHC/L/CS/625/2017, which were made available to The Guardian, 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.
In the court order signed by the Registrar, Joseph Olujoye, the judge ordered that leave be granted to the claimant/applicant that London Court of International Arbitration Final Award be recognised and enforced by the court.
The judge ruled that its decision was based on Section 31 (1) and (2); Section 51 (1) and Section 57 (1) of the Arbitration and Conciliation Act CAP A18 Volume 1, Laws of the Federation of Nigeria.
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.
This field is located about 75 miles off the coast of Nigeria in water depths ranging from 200 meters to 500 meters.
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