"NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL..."
The Nigerian
The NNPCL said this in a statement by GarbaDeen Muhammad, the chief corporate communications officer of the company.
The consummation of the deal is subject to ministerial consent and other regulatory authorisations, a statement by
The agreement is expected to clear the way for
It will ramp up
"It increases
The transaction also expands
NAOC's participating interest in
However, following the transaction, the
In a letter with reference number E&P/MD/0523 dated 4 September, addressed to the Managing Director,
"We are yet to confirm the authenticity of the said divestment, we would like to note that the purported assignment, if true, would have the following far-reaching contractual/legal implications in relation to the Joint Operating Agreement (JOA) dated
The letter explained that clause 19.1.1 of the JOA provides that "No party may assign or transfer its interest or any part thereof without the prior written consent of the other Parties, which consent shall not be unreasonably withheld.
By virtue of this provision, it said, a Party seeking to transfer part or the whole of its participating interest in the Joint Venture is obligated to seek the prior written consent of the other parties.
In this instance, it said, NAOC did not inform NEPL of any proposed assignment of its participating interest to OOL or any other party neither did NAOC seek and obtain the mandatory pre-divestment written consent and approval from NEPL in accordance with Clause 19.1.1. of the JOA.
NNPCL reacts
Reacting on Thursday, the NNPCL said a routine communication in the form of a letter written by NEPL to NAOC is being interpreted to suggest that NNPCL is opposed to the sale of the shares.
"It has come to our notice that a routine communication in the form of a letter written by
He said that the letter was sent by NEPL, an
"NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future," he said.
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