Connect with us

Business

Nigeria blocks Shells bank accounts over oil pipeline dispute

Avatar

Published

on


By William clowes sure 02/21/2021

(Bloomberg) – Nigerian court has restricted Royal Dutch Shell Plcs’ access to its bank accounts in the West African country amid legal dispute with local oil producer over contract pipeline six years ago.

Aiteo Eastern E&P Co. Ltd. is seeking billions of dollars in damages, claiming that Shell has misrepresented the condition of the pipeline and underestimated the volume of crude at one of its facilities received from the Nigerian company, according to court documents viewed by Bloomberg.

Shell said Aiteos’ lawsuit was without merit and that it was working to overturn the freeze order.

The dispute is just one of a growing list of legal tangles linked to the Shells business at Africa’s largest crude producer. So far this year, a Dutch court has ordered the company to pay compensation for oil spills in two villages over a decade ago, and the UK Supreme Court has cleared 40,000 fishermen and farmers to sue Shell in England.

Legal precedents could lead the company to face more Nigeria-related cases in its home country.

On February 15, a federal court in Nigeria’s commercial hub Lagos upheld an injunction issued late last month directing Shell not to withdraw funds held in 20 banks without first preserving or confining nearly 2.8 billions of dollars. The judge, Oluremi Oguntoyinbo, adjourned the proceedings until February 24.

Aiteos’ allegations relate to its 2015 $ 2.4 billion purchase of a 45% stake in an oil block and pipeline from a trio of multinational companies: Shell, Total SE and Eni SpA. The Nigerian state-owned energy company owns the rest.

The African company has secured a loan of nearly $ 1.5 billion from local and international banks to finance its entry into oil exploration and production activities, according to a lawsuit the company has filed against four Shell units and the parent company on January 15. Aiteo is controlled by prominent Nigerian businessman Benedict Peters.

Aiteo alleged in the lawsuit that fraudulent misrepresentation made by the local unit of Shells, the former operator of the assets, prior to the sale meant that it was virtually impossible for the company to meet its repayment obligations to its financiers. The company says the pipeline, the Nembe Creek Trunk Line, or NCTL, was in more degraded condition and more prone to crude theft than Shell had announced.

As a result of the transaction, Aiteo also alleges that Shell underestimated the volume of crude delivered to its Bonny oil and gas export terminal via the NCTL by Aiteo and other local producers. The company is asking Shell to reimburse it for 16 million barrels of oil or $ 1.3 billion.

The total sanction sought in Aiteos’ lawsuit is more than $ 9 billion, including $ 5 billion in general damages, $ 799 million to cover the purchase of the NCTL and $ 933 million to reimburse the pipeline repairs.

Shell is working to get a quick discharge of the freeze injunction which we believe was obtained by Aiteo without any valid basis, a spokesperson for the company’s Nigerian unit, SPDC, said via email.

Aiteos’ claim of gross theft / hijacking related to the Bonny terminal is factually incorrect, Shell said. Rather, it is a separate issue regarding a directive given by the Nigerian Ministry of Petroleum Resources to SPDC, as the operator of the facility, saying that the company should reallocate oil between producers who inject into another. pipeline and those who use the NCTL.

Shell plans to reimburse 2.1 million barrels to producers, including SPDC and Total, who pump crude through the Trans Niger pipeline to companies that use NCTL, according to a letter the company sent to the petroleum resources ministry on the 8th. February. The allocation to Aiteo will be 1 million barrels, the largest share coming from a joint venture led by SPDC.

The readjustment, which relates to calculations made at the Bonny terminal between June 2016 and June 2017, is part of normal industry practice, Shell said.



What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]