The Nigerian National Petroleum Company Limited (NNPC Ltd) has filed a motion to discontinue its lawsuit against Mobil Nigeria subsidiaries and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in the High Court of the Federal Capital Territory, Abuja.
The motion is aimed at finalising a settlement agreement for the divestment of Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited for $1.28 billion.
NNPC’s legal counsel, Afe Babalola & Co., presented the motion, requesting the court’s permission to withdraw the suit and strike it off the court’s cause list.
The motion cites legal precedents, including the Supreme Court decision in Adama v. Maigari (2019), which supports the relisting of a discontinued suit if the out-of-court settlement fails.
The lawsuit, originally filed by NNPC on July 5, 2022, was referred to arbitration on August 3, 2022.
Recent negotiations have led to an out-of-court settlement decision, with the Settlement Agreement requiring NNPC to withdraw the lawsuit.
The court is currently considering the motion, which, if granted, would pave the way for the parties to complete the settlement and divestment transaction.
No further details have been released, but sources indicate that the settlement agreement includes clauses designed to align the interests of all parties and finalise the transaction.
The development is seen as a significant step towards resolving the longstanding dispute between NNPC, the Mobil subsidiaries, and NUPRC.
Approval of the motion would allow the parties to focus on finalising the settlement and completing the divestment transaction.