BP Oil International Ltd v Vega Petroleum Ltd & Anor

BP Oil International Ltd v Vega Petroleum Ltd & Anor

The contracts were for FOB sale and delivery of crude oil, not merely an entitlement to lift; Defendants breached delivery obligations by failing to procure delivery; BPOI terminated the contracts; there was a total failure of consideration; BPOI is entitled to restitution of sums paid; Defendants’ arguments on construction, estoppel, time bar, and difference in value fail.

Parties
Claimant: BP Oil International Limited; First Defendant: Vega Petroleum Limited; Second Defendant: Dover Investments Limited
Jurisdiction
England and Wales
Judgment Date
21 May 2021
Procedural Posture
Commercial Court Claim / Final Judgment
Outcome
Claim allowed in full
Legal Topics
Failure of Consideration, Restitution, FOB Contracts, Implied Terms, Estoppel, Time Bar Clauses
Contract Law Unjust Enrichment Commercial Law Failure of Consideration Restitution FOB Contracts Implied Terms Estoppel +1 more

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Parties

BP Oil International Limited

Claimant

Vega Petroleum Limited

First Defendant

Dover Investments Limited

Second Defendant

Procedural Posture

Commercial Court Claim / Final Judgment

Legal Issues

  1. 1 Proper construction of the contracts (FOB sale vs entitlement to lift)
  2. 2 Whether Defendants breached delivery obligations
  3. 3 Whether BPOI effectively terminated the contracts

Ratio Decidendi

The contracts were for FOB sale and delivery of crude oil, not merely an entitlement to lift; Defendants breached delivery obligations by failing to procure delivery; BPOI terminated the contracts; there was a total failure of consideration; BPOI is entitled to restitution of sums paid; Defendants’ arguments on construction, estoppel, time bar, and difference in value fail.

Court Disposition

Claim allowed in full

Orders

  • Defendants to pay BPOI US$17,235,448 for undelivered crude oil
  • Interest as appropriate