ExxonMobil and Shell Agree to End Lawsuits Against NNPC Over Oil Contracts — Report

Four international oil companies have agreed to end lawsuits they filed in the United States against Nigeria’s state oil company, after signing a contract extension on production sharing agreements. Bloomberg reported Wednesday citing Aug. 22 letters to two New York federal judges saying the four major oil companies, which include Shell Plc, ExxonMobil Corporation, Chevron Corporation and Equinor, have agreed to settle with the Nigerian National Oil Company (NNPC) Limited and will terminate the ongoing litigation once the new agreements become effective. The development came days after NNPC Limited signed a contract extension with the oil majors. On August 12, the firm signed a contract extension with its international partners for five major oil blocks. According to NNPC Limited, the agreement could end the long-running dispute between the state-owned company and the contracting parties in Oil Mining Leases (OML) 128, 130, 132 and 133, as well as 138 PSC. “The agreement was part of the corporation’s 2017 renewal and dispute resolution strategy, with the aim of ensuring the out-of-court resolution of all disputes surrounding the 1993 PSC and agreeing on the terms for its renewal,” the executive said. . Group Executive Director of NNPC Limited, Mele Kyari, he said while speaking at the signing event. According to Bloomberg, lawyers for Equinor and Chevron asked the judge to stay the case until the end of October to allow enough time for the conditions to be met and the settlement agreement to take effect. Once that happens, the companies “expect to withdraw this action,” the letter said. He noted that Exxon and Shell, in a separate letter, said they anticipate being able to do the same after 60 days. ALSO READ: Nigerian regulator rejects Buhari’s approval of Seplat’s purchase of ExxonMobil assets Equinor and Chevron filed a lawsuit in the United States asking a court to enforce a $1.1 billion award made by an arbitration tribunal against NNPC in 2015. Shell and Exxon brought similar proceedings in New York in 2014 for a $1.8 billion arbitration award. Both suits followed accusations by big business that the NNPC took oil beyond its fair share under contracts signed in 1993 that were designed to incentivize companies to develop deep offshore blocks. Read More Related News Here Let here it in the comment below if you do have an opinion on this; ExxonMobil and Shell Agree to End Lawsuits Against NNPC Over Oil Contracts — Report