The Nigerian National Petroleum Company Limited (NNPCL) has petitioned the High Court of the Federal Capital Territory, Abuja, to halt its ongoing legal proceedings against various subsidiaries of Mobil Nigeria and the Nigerian Upstream Petroleum Regulatory Commission.
In a motion filed on June 11, 2024, by their legal representatives Afe Babalola & Co., the NNPC requested the court to grant permission for discontinuation and dismissal of the suit, with provisions for potential reinstatement should the settlement negotiations falter.
This application is part of a broader initiative to finalize a settlement agreement concerning the divestment of 100% interest in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited.
According to the motion, one of the conditions for the settlement agreement mandates NNPCL to withdraw the lawsuit to facilitate the settlement process.
NNPCL’s counsel argued that discontinuing the legal action serves the interest of justice by promoting an efficient resolution without protracted litigation.
The motion also seeks the dismissal of the lawsuit without imposing costs, underscoring the parties’ dedication to an amicable resolution.
The agreement incorporates provisions to harmonize the interests of all involved parties and conclude the transaction.
The original lawsuit, initiated on July 5, 2022, was referred to arbitration by the court on August 3, 2022.
Recent negotiations led to the decision to resolve the dispute extrajudicially.
The motion highlights the court’s role in encouraging alternative dispute resolution methods such as arbitration, conciliation, and mediation, as per Order 19 Rule 1 of the High Court’s rules.
NNPC stressed the necessity of discontinuing the lawsuit to advance the settlement process, asserting that the application aligns with Order 24 of the High Court of the Federal Capital Territory Civil Procedure Rules 2018.
Moreover, the motion clarified that if the out-of-court settlement fails, the option to reinstate the discontinued lawsuit ensures NNPC’s ability to seek judicial redress.