Euroil Ltd v Cameroon Offshore Petroleum Sarl

Euroil Ltd v Cameroon Offshore Petroleum Sarl

The court granted an interim injunction restraining CAMOP from engaging in correspondence or communications with Cameroon authorities regarding the Etinde permit joint operations, except that CAMOP may attend and participate in meetings provided it does not contradict or undermine the jointly approved application, pending further hearing. The balance of convenience favored preserving EurOil's contractual rights while not depriving CAMOP of its right to participate under clause 6.6.2.

Parties
Claimant/applicant: EUROIL LTD.; Defendant/respondent: CAMEROON OFFSHORE PETROLEUM SARL
Jurisdiction
England and Wales
Judgment Date
06 January 2014
Procedural Posture
Commercial Injunction Application / Interim Injunction Pending Return Date
Outcome
Interim injunction granted pending return date
Legal Topics
Interim Injunctions, Preservation of Assets, Joint Operating Agreements, Arbitration Act 1996 S.44, Operator Rights and Obligations
Arbitration Commercial Law Oil and Gas Law Interim Injunctions Preservation of Assets Joint Operating Agreements Arbitration Act 1996 S.44 Operator Rights and Obligations

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Parties

EUROIL LTD.

Claimant/applicant

CAMEROON OFFSHORE PETROLEUM SARL

Defendant/respondent

Procedural Posture

Commercial Injunction Application / Interim Injunction Pending Return Date

Legal Issues

  1. 1 Whether the court should grant an interim injunction restraining CAMOP from communicating with Cameroon authorities regarding the Etinde permit pending arbitration
  2. 2 Whether clause 6.6.1 of the joint operating agreement grants EurOil exclusive rights to represent the parties to the Government
  3. 3 Whether communications by CAMOP constitute a breach of the joint operating agreement

Ratio Decidendi

The court granted an interim injunction restraining CAMOP from engaging in correspondence or communications with Cameroon authorities regarding the Etinde permit joint operations, except that CAMOP may attend and participate in meetings provided it does not contradict or undermine the jointly approved application, pending further hearing. The balance of convenience favored preserving EurOil's contractual rights while not depriving CAMOP of its right to participate under clause 6.6.2.

Court Disposition

Interim injunction granted pending return date

Orders

  • CAMOP restrained from engaging in correspondence or communications with SNH or Cameroon authorities regarding Etinde permit joint operations, except attendance and participation in meetings without contradicting or undermining the jointly approved application.
  • Costs reserved to return date.