$55m Debt Recovery: FG Files Appeal Notice Over Dismissed Case Against Agip, Brasoil

 

 

The Federal Government has filed a Notice of Appeal, challenging the decision of a Federal High Court in Lagos which dismissed the debt recovery suit it filed against Nigeria Agip Oil and Brasoil Services Company Nigeria Ltd over undeclared oil shipment.

In the Notice of Appeal filed at the Lagos Division of the Court of Appeal, the FG challenged the entire decision of the Court on several grounds.

The FG submitted that the lower court erred in law when it held that the plaintiff’s case failed for lack of proof on a preponderance of the evidence.

The government also contended that the court failed to consider relevant facts put before it, and also erred in law when it held that the defendant had performed the entire relevant obligation in relation to a declaration of crude oil revenue to be remitted to the FG.

RELATED: Court Dismisses FG’s $55m Debt Recovery Suit Against Agip Oil

The plaintiff further claimed that in line with the established principle of law, there must be a crucial appraisal and evaluation of all pieces of evidence brought before the court.

The FG therefore, asked that an order of the appellate court should set aside the decision of the lower court which dismissed its suit.

No date has been fixed for hearing of the Appeal.

A Federal High Court sitting in Lagos on Wednesday had dismissed a $55million debt recovery suit filed by the Federal Government of Nigeria against Agip Oil Company Limited.

Justice Mojisola Olatoregun in her judgment held that the Federal Government failed to furnish the court with sufficient evidence in proof of the case.

NNPC, IOC Sign Cash-Call Exit Agreement

NNPC, IOC, Cash-Call AgreementThe Nigerian National Petroleum Corporation (NNPC) and International Oil Companies (IOC) have signed an agreement to exit the Joint Venture Cash-Call Arrangement.

This brings to an end, the NNPC’s counterpart funding for 60% equity shareholding it owns in various oil and gas fields in international and indigenous oil firms.

The agreement was signed on Thursday in Abuja between the national oil company and Shell Petroleum, Nigeria Agip Oil, Total, Chevron and Exxon Mobil.

It is coming barely 24 hours after President Muhammadu Buhari announced that the Federal Government would cut provisions for the Joint Venture Cash-Calls, starting from January 2017.

The Minister of State for Petroleum, Dr. Ibe Kachikwu, noted that a governance process would be set up with immediate effect, to manage a new funding mechanism that would provide for cost recovery.

The NNPC Group Managing Director, Maikanti Baru, on his part, explained that the exit has set the stage for a review of the cash-call agreement.

He added that it has also created an opportunity for the adoption of a more sustainable funding arrangement with international oil companies’ joint venture operations.

Cash-calls is a counterpart funding the NNPC pays annually for the 60% equity shareholding it owns in various oil and gas fields operated by IOC and indigenous oil firms.

In 2016, underfunding for cash-calls amounted to $2.5 billion, bringing the national oil firm’s total cash-call arrears over the years to $8.5 billion.