society
Another Oil Lawsuit Against Shell Alleges Fraud, Deceit, Misrepresentation
Another Oil Lawsuit Against Shell Alleges Fraud, Deceit, Misrepresentation
…As DPR Awards Kugbo West Marginal Field In OML 29 To 7 Waves Petroleum
…Aiteo Seeks Over $2 billion in General, Other Collateral Damages
The controversy surrounding the sale of OML 29 by Shell Petroleum Development Company of Nigeria to Aiteo Eastern Exploration and Production Company Limited in 2014 may be far from being over as Aiteo has again dragged Shell to court over what it alleged as “fraud, deceit and misrepresentation” in the sale.
In a suit, FHC/ABJ/C8/738/2021, dated 27 July 2021 and filed before a Federal High Court in Abuja, Aiteo is accusing Shell of not fully disclosing the true position of the oil wells to it at the time of the sale, despite receiving the full amount required for the sale.
Describing Shell’s action as “fraudulent, deceitful” and a “misrepresentation,” Aiteo is seeking, among others, the payment of over $2 billion from Shell in general and other collateral damages as a result of the alleged lies and deceit at the time of the sale.
Shell, which sold its stake in OML 29 to Aiteo in 2014, is accused of transferring the Kugbo West and Okiori Marginal Fields to the Department of Petroleum Resources without disclosing this to Aiteo during the negotiations that led to the purchase of the asset.
Trouble started with a letter dated September 16, 2021, and titled, ‘2020 Marginal Field Bid Round Award Of Kugbo West Marginal Field Located In OML 29 to 7 Waves Petroleum Limited’, from 7 Waves Petroleum Limited, informing Aiteo that a section of the controversial OML 29 now belongs to 7 Waves, courtesy of the 2020 Oil Bid Round conducted by the Department of Petroleum Resources (DPR).
The letter signed by Mr. Daniel Alabi, Managing Director, 7 Waves Petroleum Limited, stated in part:
“7 Waves Petroleum Limited actively participated in the 2020 Marginal field bid round conducted by the Department of Petroleum Resources [DPR] and emerged as the awardee with 100 per cent equity interest in Kugbo West Marginal Field in OML 29 upon payment of the statutory signature bonus. The field would be jointly operated with our partner ‘Multiplan Nigeria Ltd’.
“Our firm would be glad to discuss and engage with Aiteo Eastern Exploration and Production Company Limited being the lease holder for OML 29 with the underlying objective of executing the required Farmout Agreement thus (to) enable our firm commence field development activities essential to meet the timeline set by the DPR.
“We would be glad to set up an introductory meeting to discuss the next steps, kindly notify our firm of a suitable date and time. Thank you for the assistance, we look forward to a mutually beneficial and long-lasting working relationship.”
Aiteo had earlier received the rude shock when DPR notified it of the new development in a letter dated 3rd August 2021 and signed by Edu Inyang for Director/CEO, DPR.
The letter titled, ‘2020 Marginal Field Bid Round Award Of Kugbo West Marginal Field Located In OML 29 to 7 Waves Petroleum Limited’, copy of which was sighted by THEWILL, stated in part: “Kindly be informed that Kugbo West Marginal Field located in OML 29 has been awarded to 7 Waves Petroleum Limited (7 Waves) following the 2020 Marginal Field Bid Round exercise. The award was accordingly communicated to 7 Waves through our letter DPR/tt86/vol.1/269/98 dated 3rd May 2021.
“The award letter, among others, specified that the awardee negotiate and conclude a Farm-out Agreement with the lease holder of the Oil Mining Lease {OML) 29 within ninety (90) days.
“Consequently, you are hereby requested to commence negotiation of the Farm-out Agreement of Kugbo West Marginal Field with 7 Waves, as the company has met the conditions for the award of the field. It is expected that the negotiation will be concluded within the time specified in paragraph 2 above.”
Responding to the development, Aiteo moved to the court, accusing Shell of not informing it that part of the OML 29 had actually been ceded to the Nigerian National Petroleum Corporation (NNPC), its joint partner for the oil wells, as settlement for other undisclosed obligations.
Apparently miffed by the disappointments it has been meeting with the entire OML 29 since its purchase from Shell in 2013/2014, Aiteo is seeking not only the payment of the sum of $2,135,250,000 that would have been accrued from commercial exploration and other activities if the deal had gone well but also a refund of the sum of $46, 200,000 being the payment made to Shell for the controversial portion of the oil wells that has now been allocated to 7 Waves.
Efforts to get the Media Relations Manager of Shell, Mr Bamidele Odugbesan, to comment on the latest development proved futile when filing this report on Friday as phone calls made to his phone number did not go through.
Recall that bubble had burst for Shell as a court in The Netherlands, early in the year, compelled it to compensate two Nigerian farmers for damages over 2004/2005 oil leaks. Its alleged age-long game of cheating and exploiting technicalities in the production and evacuation of crude oil to allegedly short-change not only the Federal Government, but also local operators in the oil and gas business, were also busted.
And despite all justifications and defence, Shell was also fingered in a messy missing crude oil scandal by local regulator, the Department of Petroleum Resources (DPR) through unapproved metering system, which it allegedly used to misappropriate crude and shortchange local operators.
society
NAWOJ: SEKINAT, CHARITY GETS VOTE OF CONFIDENCE
NAWOJ: SEKINAT, CHARITY GETS VOTE OF CONFIDENCE
The Nigeria Association of Women Journalists,(NAWOJ), Ogun State Chapter Executives has unanimously passed a vote of confidence on Chairman NAWOJ SEKINAT Salam and the Financial Secretary, Charity James, saying that, their leadership reflect the ideal and objectives of NAWOJ.
This was revealed in a communique issued at an Emergency meeting of the Executive held at the NUJ State Council, Iwe-Iroyin in Abeokuta.
The vote of confidence on the Leadership of NAWOJ was unanimously signed by all the five executive members that attended the meeting with the vice chairperson taking apology for official engagement outside the state capital.
According to the communique ” Consequently, NAWOJ Ogun State Chapter, reaffirms it’s unwavering support and confidence in the Chairperson and the Financial Secretary, Sekinat Salam and Charity James respectively, Urge them to continue in their commitment to purposeful leadership in the best interest of the association and the society at large”.
Speaking briefly with Journalists after the emergency Executive meeting, the Chairperson, Nigeria Association of Woman Journalists (NAWOJ), Com. Sekinat Salam, said the meeting was necessary as the news of her suspension was laughable and insulting because it is like a pot calling a kettle black in this case, saying that the Leadership of the State Council, Com. Wale Olanrewaju has no local standing to suspend her or any executive member, even he cannot be a judge in his own case.
According to her” The Leadership of the Nigeria Union of Journalists, Ogun State led by Wale Olanrewaju has always been misusing power without recourse to the constitution of this noble Union, hence has no local standing to suspend me or any executive member “.
She said only the Central Working Committee (CWC) has the constitutional rights to sanction or suspend any members found wanting after due process has been followed.
While calling on members to stay calm, Com. Sekinat Salam assured members of positive representation of NAWOJ at both the State and National level, adding the success recorded under her administration cannot be overemphasized.
She therefore called on the National leadership of NUJ to critically look into the matter, either by setting up independent committee to investigate the issues and resolve the matter as quickly as possible.
society
Adron Homes Chairman Congratulates Oyo State on 50 Years of Progress
Adron Homes Chairman Congratulates Oyo State on 50 Years of Progress
The Chairman and Chief Executive Officer of Adron Homes and Properties Limited, Aare Adetola Emmanuelking, has congratulated the Government and people of Oyo State as the state marks its 50th anniversary, describing the occasion as a celebration of resilience, cultural pride, and sustained progress.
He noted that since its creation, Oyo State has remained a strong contributor to Nigeria’s socio-economic and cultural development, emerging as a hub of commerce, education, and innovation.
According to him, the Golden Jubilee offers a moment for reflection and renewed commitment by government, private sector players, traditional institutions, and citizens toward building a more inclusive and prosperous state.
Aare Emmanuelking commended the state’s ongoing transformation through investments in infrastructure, economic expansion, and human capital development, adding that sustainable growth is deliberate and must remain purpose-driven.
He also praised the leadership of the current administration while acknowledging the contributions of past leaders whose efforts laid the foundation for today’s Oyo State.
Reaffirming Adron Homes’ commitment to national development, he described Oyo State as a land of opportunity. He wished the state continued peace and prosperity, expressing confidence that the next fifty years will bring even greater achievements for the Pace Setter State and its people.
society
TY BURATAI HUMANITY CARE FOUNDATION CONDOLES WITH BIU EMIRATE OVER TRAGIC ATTACK
TY BURATAI HUMANITY CARE FOUNDATION CONDOLES WITH BIU EMIRATE OVER TRAGIC ATTACK
In a profound expression of sorrow, the TY Buratai Humanity Care Foundation has extended its heartfelt condolences to the families of the victims and the entire people of Biu Emirate, Borno State, following the recent tragic attack attributed to Boko Haram. This devastating assault, which occurred at a work site in northeastern Nigeria, claimed the lives of dozens, including brave soldiers committed to protecting the nation.
In a statement released to the press and signed by the Chairman of the foundation, Ibrahim Dahiru Danfulani Sadaukin Garkuwan Keffi/Betara Biu, the Grand Patron of the Foundation, His Excellency Amb. Lt. Gen. Tukur Yusufu Buratai CFR (Rtd), former Chief of Army Staff, described the incident as “one too many senseless, barbaric, and ruthless displays of inhumanity.” His Excellency emphasized the heartbreaking impact of such attacks on innocent, hardworking citizens striving to make a positive difference in their communities.
The Grand Patron praised the swift and decisive response of military personnel during this critical time, underscoring their brave commitment to safeguarding the nation. He called upon them to maintain this momentum, commending their courage and sacrifice in the face of adversity. “May Almighty Allah forgive their souls and grant them Aljannah Firdouse,” he remarked, encouraging the nation to honor their spirit of sacrifice as they rally together to rebuild and restore hope across the region.
In his statement, Gen. Buratai highlighted the importance of collective action in overcoming the challenges posed by insecurity, urging concerned citizens to increase their efforts in fostering a virile community that future generations can cherish. “Together, we can surmount these troubles,” he asserted, calling on all patriotic leaders and citizens to unite in the fight against violence and insecurity.
The TY Buratai Humanity Care Foundation remains committed to supporting initiatives that promote peace, security, unity, and prosperity. As the foundation extends its condolences to the bereaved, it also calls upon all segments of society to collaborate in creating a better and safer future. May Allah guide and protect the nation and lead it toward enduring peace. Amen.
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