Euroil Ltd v Cameroon Offshore Petroleum Sarl [2014] EWHC 12 (Comm) (06 January 2014)

Euroil Ltd v Cameroon Offshore Petroleum Sarl [2014] EWHC 12 (Comm) (06 January 2014)

An interim injunction was justified under s.44(3) Arbitration Act 1996 to preserve the claimant's contractual rights as assets, given the serious issue to be tried regarding breach of clause 6.6.1 by the respondent and the risk of irreparable harm. However, the injunction must not deprive the respondent of its contractual right to attend and participate in meetings under clause 6.6.2, provided it does not contradict or undermine the jointly approved application.

Citation
[2014] EWHC 12 (Comm)
Parties
Claimant/applicant: EUROIL LTD.; Defendant/respondent: CAMEROON OFFSHORE PETROLEUM SARL
Jurisdiction
England and Wales
Judgment Date
06 January 2014
Procedural Posture
Application Under S.44 Arbitration Act 1996 / Interim Injunction Hearing Prior to Arbitration
Outcome
Interim injunction granted pending return date
Legal Topics
Interim Injunctions, Preservation of Assets, Joint Operating Agreements, Arbitration Support, Operator Rights, Contractual Interpretation
Arbitration Commercial Law Oil and Gas Law Interim Injunctions Preservation of Assets Joint Operating Agreements Arbitration Support Operator Rights +1 more

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Parties

EUROIL LTD.

Claimant/applicant

CAMEROON OFFSHORE PETROLEUM SARL

Defendant/respondent

Procedural Posture

Application Under S.44 Arbitration Act 1996 / Interim Injunction Hearing Prior to Arbitration

Legal Issues

  1. 1 Whether an interim injunction should be granted under s.44(3) Arbitration Act 1996 to restrain communications by a joint venture party with government authorities in breach of a joint operating agreement
  2. 2 Whether the claimant's contractual rights constitute 'assets' under s.44(3)
  3. 3 Proper construction of clauses 6.6.1 and 6.6.2 of the joint operating agreement regarding representation and participation in government meetings

Ratio Decidendi

An interim injunction was justified under s.44(3) Arbitration Act 1996 to preserve the claimant's contractual rights as assets, given the serious issue to be tried regarding breach of clause 6.6.1 by the respondent and the risk of irreparable harm. However, the injunction must not deprive the respondent of its contractual right to attend and participate in meetings under clause 6.6.2, provided it does not contradict or undermine the jointly approved application.

Court Disposition

Interim injunction granted pending return date

Orders

  • Defendant restrained from engaging in correspondence with or making communications to Cameroon authorities regarding the Etinde permit and joint operations, except for attendance and participation at meetings on 7th and 8th January 2014, provided no communication contradicts or undermines the jointly approved...
  • Costs reserved to return date.