Business
You Risk Jail Term, TotalEnergies MD Warned Over Rig Row
The managing director of TotalEnergies Upstream Nigeria Limited has been warned that he risks going to jail over contempt of court arising from the company’s alleged effort to breach a legal agreement arising from a contract with Palmeron Nigeria Limited to provide a rig for the company’s OML 130.
GWG.ng reports that the warning served by Lanre Ogunlesi, SAN, lawyers to Palmeron comes upon other claims of the violations of Nigeria’s local content law by TotalEnergeies in hiring a rig from a foreign concern after reaching an agreement with Palmeron, a Nigerian company.
The alleged move by TotalEnergies which is reported to be at a higher cost is expected to push up production cost per barrel of oil flowing from OML 130.
It was gathered that Palmeron having won the contract to provide the rig, that TotalEnergies in cahoots with some officials of the Nigerian National Petroleum Company Limited had moved to recruit another rig supplier for OML 130.
In a warning to the top TotalEnergies in Nigeria, the law firm wrote:
The Deputy Managing Director,
TotalEnergies Upstream Nigeria Limited
Plot 1415E, Adetokunbo Ademola Street,
Victoria Island
Lagos
ATTENTION: VICTOR BANDELE
Dear Sir
RE: SUIT NO: LD/4618CMW/2022
PALMERON NIGERIA LIMITED V. TOTALENERGIES UPSTREAM NIGERIA LIMITED (TUPENI) & NNPC UPSTREAM INVESTMENT SERVICES (NUIS) IN RE: PROVISION OF DEEP OFFSHORE DRILLING RIG FOR OML 130 DEEPWATER DEVELOPMENT AND EXPLORATION PROJECTS
The Community Development Committee of Oil and Gas Producing Communities of Niger Delta (CDCOGPCND) has urged the Nigerian Content Development & Monitoring Board, NCDMB to put Totalenergies Upstream Nigeria to task on its move to breach the country’s local content laws.
The group’s call came against reservations by the NCDMB against the
Further to our letter dated 10th January, 2023 in respect of the above mentioned matter and copy enclosed to re-freshen your memory, we write again on the instructions of our client to forewarn you about the consequence of your insistence on proceeding with the provision of a drill ship rig for OML 130 despite the fact that our application for interlocutory injunction which was already served on you with the originating writ of summons has been adjourned for arguments and fixed for 1st March 2023.
Our clients representatives inform us that despite the fact the court has assumed jurisdiction in the matter and refused to refer the matter arbitration, you directed the drill ship rig be moved to OML 130 and commence operations on the 28th January 2023.
Your conduct is contemptuous and will be solemnly responsible for your actions. Our clients representatives also inform us that certain elements in NNPC Upstream Investment Services (NUIS) are giving you Dutch courage and assuring you that nothing will happen if you proceed despite the fact that you are aware of the motion for injunction.
If you are of the opinion that nothing will happen or no actions will be taken I assure you that something will, as we shall take the necessary action in law and you will solely responsible.
We are in the circumstance warning you for the umpteenth time not to listen to whoever is urging you on to proceed with the drilling operation on the 28th January or at any other time when the matter is in court.
Once again, we warn that the consequence is grave and it will be a shame to end a glorious career in jail.
In the inner recess of your office we want you to ruminate about the effect it will have on the image of your company and family.
We copy the courts.
Thank you.
Yours Faithfully,
PP: LANRE OGUNLESI, SAN & CO.,
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