Chevron Oil-Lease Sale Is Halted by Nigerian Court

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Chevron CorporationChevron Corp. (CVX)’s planned $1 billion sale of three oil leases in Nigeria was halted by the country’s federal high court after a local bidder sued the company.

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Justice Mohammed Yunusa issued an interim injunction preventing Chevron from inviting or accepting further bids for its 40 percent interest in the leases, court documents show. Local producer Brittania-U is suing Chevron for failing to complete deals on three leases after bidding closed Nov. 15, Brittania-U’s lawyer, Rickey Tarfa, said in a statement.

“The principal claim is to validate the sale” to Brittania-U and secure damages for failure to uphold the contract, Tarfa said. Chevron, the third-largest oil producer in Nigeria, holds interests in 10 deepwater oil blocks in the country in partnership with state-owned Nigerian National Petroleum Corp. In June, it offered its 40 percent stake in five leases with a view to selling them by year-end. It’s one of several foreign producers in Nigeria selling assets as their operations are plagued by persistent unrest, violence and crude theft.

The suit against San Ramon, California-based Chevron was filed Dec. 12. The company is “aware of a court action” in respect of the leases, Isabel Ordonez, a spokeswoman in Houston, said by e-mail. “Chevron is a responsible and law-abiding corporate organization committed to the laws and regulations guiding the operations of oil companies in the country.”

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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