Exxon shell face uphill legal battle over soured nigerian deal

ExxonMobil and Royal Dutch Shell are indeed facing a significant legal battle over a soured deal in Nigeria. Here's a summary of the situation:

In 2019, ExxonMobil and Shell agreed to sell their joint venture, the Akpo and Egina oil fields, to Seplat Petroleum Development Company, a Nigerian independent oil and gas company. The deal was valued at around $1.4 billion.

However, in 2020, Seplat claimed that ExxonMobil and Shell had breached the sale agreement by failing to provide necessary information and documentation, which led to delays and increased costs for the deal. Seplat subsequently filed a lawsuit against the two companies in a London court, seeking damages and specific performance.

The dispute centers around the alleged failure of ExxonMobil and Shell to provide Seplat with critical information, including data on the oil fields' production and reserves. Seplat claims that this lack of transparency has caused significant delays and increased costs, which have impacted the deal's value.

ExxonMobil and Shell have denied any wrongdoing, arguing that Seplat is trying to renegotiate the deal or walk away from the agreement. The two companies have also claimed that Seplat is responsible for the delays and increased costs, citing issues with the Nigerian government's regulatory environment and the COVID-19 pandemic.

The legal battle is expected to be complex and protracted, with both sides presenting their cases in court. The outcome will likely depend on the interpretation of the sale agreement and the evidence presented by each party.

This dispute highlights the challenges and risks involved in international oil and gas deals, particularly in countries with complex regulatory environments and high levels of corruption. It also underscores the importance of transparency and due diligence in such transactions.

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