Pan Petroleum AJE Ltd v Yinka Folawiyo Petroleum Co Ltd & Ors [2017] EWHC 1102 (Comm) (12 May 2017)

Pan Petroleum AJE Ltd v Yinka Folawiyo Petroleum Co Ltd & Ors [2017] EWHC 1102 (Comm) (12 May 2017)

The defendants' exclusion of the claimant from the Operating Committee meeting and passing of resolutions concerning Aje-6 and Aje-7 wells constituted the exercise of rights under Article 8.2 'in respect of' those wells, in breach of the injunction. The wording of the injunction was sufficiently clear and wide to...

Source-derived case information.

Citation
[2017] EWHC 1102 (Comm)
Parties
Claimant: Pan Petroleum AJE Limited; Defendant: Yinka Folawiyo Petroleum Co Ltd; Defendant: YFP Deepwater Co Ltd; Defendant: EER (Colobus) Nigeria Ltd; Defendant: Newage Exploration Nigeria Ltd; Defendant: PR Oil & Gas Nigeria Ltd
Jurisdiction
England and Wales
Judgment Date
12 May 2017
Procedural Posture
Commercial Court Contempt Application / Judgment on Contempt Application
Outcome
Relevant Defendants found in contempt of court
Legal Topics
Interim Injunctions, Contempt of Court, Joint Operating Agreements, Default Provisions, Operating Committee Rights
Commercial Law Contract Law Oil and Gas Law Interim Injunctions Contempt of Court Joint Operating Agreements Default Provisions Operating Committee Rights

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Parties

Pan Petroleum AJE Limited

Claimant

Yinka Folawiyo Petroleum Co Ltd

Defendant

YFP Deepwater Co Ltd

Defendant

EER (Colobus) Nigeria Ltd

Defendant

Newage Exploration Nigeria Ltd

Defendant

PR Oil & Gas Nigeria Ltd

Defendant

Procedural Posture

Commercial Court Contempt Application / Judgment on Contempt Application

Legal Issues

  1. 1 Whether the defendants breached an interim injunction by excluding the claimant from an Operating Committee meeting concerning Aje-6 and Aje-7 wells
  2. 2 Interpretation of the scope of the injunction in relation to Article 8.2 of the Joint Operating Agreement

Ratio Decidendi

The defendants' exclusion of the claimant from the Operating Committee meeting and passing of resolutions concerning Aje-6 and Aje-7 wells constituted the exercise of rights under Article 8.2 'in respect of' those wells, in breach of the injunction. The wording of the injunction was sufficiently clear and wide to restrain such conduct, regardless of the basis for the alleged default.

Court Disposition

Relevant Defendants found in contempt of court

Orders

  • Court finds the First, Second, and Fourth Defendants in contempt of court for breach of the injunction.
  • Submissions to be heard on the consequences of the contempt finding.