Exxonmobil, Shell, Chevron To Withdraw $3bn Suits Against NNPC

ExxonMobil Corporation, Chevron Corporation, and Equinor ASA have said they will withdraw their lawsuits of about $3 billion, against the Nigerian National Petroleum Company (NNPC) Limited.

According to court letters, dated August 22, seen by Bloomberg yesterday, the oil majors told two New York federal judges that they had agreed to settle with NNPC.
It added that the IOCs also agreed to terminate ongoing litigation once the new arrangements take effect.

Advertisement

The move comes 10 days after NNPC renewed oil production sharing contracts (PSCs) with the oil majors — after nearly three decades.

The national oil firm also resolved lingering disputes with the PSCs contractors.

Advertisement

According to Bloomberg, lawyers representing Equinor and Chevron asked the judge to suspend the case until the end of October “to allow sufficient time for the conditions to be satisfied and for the settlement agreement to become effective”.

The companies said once that is done, they “expect to withdraw this action”.
On their part, Exxon and Shell, in a separate letter, said they expect to withdraw the litigation after 60 days.

Advertisement

In 2017, Equinor and Chevron filed a suit in the US, asking a court to enforce a $1.1 billion award issued by an arbitration tribunal against NNPC in 2015.

Shell and Exxon initiated similar proceedings in New York in 2014 over a $1.8 billion arbitration award.

Advertisement

Both penalties followed allegations by the oil majors that the NNPC took crude beyond its entitlement under 1993 PSC contracts, designed to incentivise the companies to develop deep offshore blocks.

Advertisement
Sola Adeyemo

Recent Posts

Breaking: FIRS Announces Fresh Recruitment, See Eligibility Criteria, Application Deadline

The Federal Inland Revenue Service (FIRS) has begun its recruitment exercise for experienced professionals to…

3 hours ago

Primate Ayodele’s Prophecies For 2025

Primate Elijah Ayodele Unveils 94-Page Prophecy for 2025, Makes Striking Predictions About Nigeria’s Political and…

5 hours ago

Tinubu’s Aide Condemns Plan To Reinstall ‘Jesus Is Not God’ Banner In Lekki Mosque

The Senior Special Assistant to President Bola Tinubu on Community Engagement (North Central), Abiodun Essiet,…

8 hours ago

President Tinubu’s reforms not responsible for food stampedes – FG

The Minister of Information and National Orientation, Mohammed Idris, has warned politicians against linking stampedes…

8 hours ago

I will be more influential in Nigeria than UK – Tobi Adegboyega

Tobi Adegboyega, founder of the Salvation Proclaimers Anointed Church (SPAC Nation), has stated that he…

8 hours ago

Petrol To Sell ₦‎935/Litre From Today – IPMAN

The Independent Petroleum Marketers Association of Nigeria has said that petrol is going to sell…

8 hours ago