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Four international oil companies have agreed to end lawsuits they filed in the United States against Nigeria’s state-owned oil company-NNPC. These companies have signed a contract extension on production sharing agreements
Four international oil companies have agreed to end lawsuits they filed in the United States against Nigeria’s state-owned oil company-NNPC. These companies have signed a contract extension on production sharing agreements.
According to some reports, four major oil companies which include Shell Plc, ExxonMobil Corporation, Chevron Corporation, and Equinor have agreed to settle the dispute with the Nigerian National Petroleum Company (NNPC) Limited and will terminate ongoing litigation once the new arrangements take effect.
It may be recalled that NNPC Limited signed a contract extension with these oil majors on 12 August. The firm had on 12 August signed a contract extension with its international partners for five major oil blocs. The agreement is designed to put an end to the protracted dispute between the state-owned company and the contractor parties in Oil Mining Leases (OMLs).
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According to the report, lawyers for 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. Shell and Exxon initiated similar proceedings in New York in 2014 over a US$1.8-billion arbitration award.
