NNPC Withdraws Lawsuit Over ExxonMobil’s $1.28bn Asset Sale To Seplat

The Nigerian National Petroleum Company Limited (NNPC) has filed a motion in the High Court of the Federal Capital Territory (FCT) Abuja, seeking to discontinue its ongoing legal action against several subsidiaries of Mobil Nigeria and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The move aimed to facilitate finalising a settlement agreement involving the divestment of Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited for $1.28 billion.

NNPC’s legal counsel, Afe Babalola & Co., presented the motion, requesting the court’s permission to withdraw the suit and strike it off the court’s cause list, with a provision to relist the case if the settlement process fails.

LEADERSHIP reports that the lawsuit, originally filed by NNPC on July 5, 2022, was referred to arbitration on August 3, 2022. Recent negotiations have led to an out-of-court settlement decision, with the Settlement Agreement requiring NNPC to withdraw the lawsuit.

Isaika Popoola, a litigation manager at Afe Babalola & Co., detailed the case history, arbitration process, and terms of the Settlement Agreement in an affidavit. Popoola noted that several meetings were held to resolve the dispute concerning the divestment of MPNU shares to Seplat.

RELATED

Dangote Sees Growth In Export Of Refined Products With $1.35Bn Afreximbank’s Deal

9 hours ago

‘Egbin Power Plc, Ikeja Electric, FIPL Not In Receivership’

9 hours ago

The Settlement Agreement includes clauses designed to align the interests of all parties and finalise the transaction. The motion underscores the court’s role in encouraging dispute resolution through arbitration, conciliation, and mediation, in accordance with Order 19 Rule 1 of the High Court’s rules.

NNPC’s legal team stressed that discontinuing the lawsuit is crucial for completing the settlement process and that their application complies with Order 24 of the High Court of the Federal Capital Territory Civil Procedure Rules 2018.

The motion cites legal precedents, including the Supreme Court decision in Adama v. Maigari (2019), which supports the relisting of a discontinued suit if the out-of-court settlement fails, ensuring NNPC retains the right to seek judicial recourse if the settlement is not successfully concluded.

“The applicant humbly urges Your Lordship to grant leave to discontinue this suit and consequently strike it off the court’s cause list,” the motion states. “Granting this application aligns with the policy of this Honourable Court and facilitates the finalization of the settlement process.”

NNPC’s counsel argues that discontinuing is in the interest of justice and promotes an efficient resolution without prolonged litigation. The motion also requests the court to strike out the suit without costs, highlighting the parties’ commitment to an amicable settlement.

The court is now considering the motion, which, if granted, would signify a crucial step toward resolving the longstanding dispute between NNPC, the Mobil subsidiaries, and NUPRC. Approval of the motion would allow the parties to concentrate on finalising the settlement and completing the divestment transaction.