Equinor Says It Wins Nigeria Case Over Agbami Oil Profits
William Clowes, Bloomberg News
, Photographer: Simon Dawson/Bloomberg
(Bloomberg) Equinor ASA said the Nigerian Supreme Court overturned a ruling that had threatened to divert 1.5% of the companyâs profits from one of the countryâs largest oil fields to a former consultant.
The Supreme Court ruling Friday that the lower courts had no jurisdiction over the case should conclude a dispute that has played out in the West African nationâs courtrooms for more than a decade, Equinor spokesman Erik Haaland said. âWe are pleased with the courtâs decision, which is in line with our position,â he said in an emailed statement.
Equinor wins decade-long court fight over Nigeria oil profits By William Clowes on 2/5/2021
(Bloomberg) Equinor ASA said the Nigerian Supreme Court overturned a ruling that had threatened to divert 1.5% of the companyâs profits from one of the countryâs largest oil fields to a former consultant.
The Supreme Court ruling Friday that the lower courts had no jurisdiction over the case should conclude a dispute that has played out in the West African nationâs courtrooms for more than a decade, Equinor spokesman Erik Haaland said. âWe are pleased with the courtâs decision, which is in line with our position,â he said in an emailed statement.
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LAGOS (Reuters) - Nigeria’s Supreme Court ruled in favour of Norwegian oil company Equinor in a long-running case over profit from its stake in the Agbami oilfield, a company spokesman said on Friday.
FILE PHOTO: Equinor s flag in Stavanger, Norway December 5, 2019. REUTERS/Ints Kalnins//File Photo
The ruling ends legal proceedings, spokesman Erik Haaland said. It alleviates more than 10 years of legal uncertainty for Equinor and gives it more flexibility in how it handles the millions of dollars a day generated by its share in the field.
The court ruled that the lower courts did not have jurisdiction.
Norwegian
Equinor (OSE: EQNR, NYSE: EQNR) has decided to write down the book value of its Tanzania LNG project (TLNG) on the company’s balance sheet by 982million USD. This will be reflected in adjusted earnings for EPI division in fourth quarter 2020 results to be reported on 10 February 2021.
While progress has been made in recent years on the commercial framework for TLNG, overall project economics have not yet improved sufficiently to justify keeping it on the balance sheet. The TLNG project has an anticipated breakeven price well above the portfolio average for Equinor and is, at this time, not competitive within this portfolio. Equinor will continue to engage with the Government of Tanzania in negotiations on a commercial, fiscal and legal framework that may provide a viable business case for TLNG in the future.
Norwegian oil giant Equinor ASA says it has completed its exit from the Canadian oilsands by selling the 18.8 per cent stake in producer Athabasca Oil Corp. it acquired three years ago.