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N300bn Suit Against AMCON Not Dismissed – Bi-Courtney

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Wale Babalakin

Bi-Courtney Consortium says the N300bn suit it brought against the Assets Management Corporation of Nigeria has not been dismissed by the court.

The company, in a reaction to media reports that the case had been dismissed by the Federal High Court sitting in Lagos, described the claim as erroneous.

According to the company, owned by Dr. Wale Babalakin, the reports are a distortion of facts.

“A judgment delivered on May 3, 2016 was suddenly moulded into ‘breaking news’ in some print and online media in mid-August. It is not a new case, it is not a new judgment,” the company said in a statement.

“The issue of whether AMCON was liable to pay damages to Bi-Courtney was never determined by the court. For the avoidance of doubt, the parties to the case had indeed entered into an out-of-court settlement as set out in an offer letter by AMCON, dated May 7, 2014. It was on account of the non-production of the said letter in court that Hon. Justice M. B. Idris dismissed the suit. We have filed a notice of appeal and we will have our day in court,” the statement added.

Bi-Courtney said that as the claimant, it had sought a number of reliefs against AMCON as the defendant.

The statement read in part, “The first relief (Relief 1) sought ‘A declaration that as of the 22nd of September 2014, the defendant’s offer letter dated 7th May, 2014, cannot create a new cause of action.’

“The ‘new cause of action’ referred being an ex-parte order granted on September 22, 2014 (Suit no. FHC/LCS/1361/2014) which prevented Dr. Babalakin from drawing from his bank accounts, with the resultant damage to his reputation and businesses.

“Among other reliefs, Bi-Courtney sought an award of general, aggravated and exemplary damages totaling N300bn – which the company insists were never determined by the court.”

According to the company, the court did not determine its N300bn claim for damages, and reports to the contrary are inaccurate and lacking in credibility.

“We urge members of the press to check all available facts and seek clarification from us in future, before rushing to publish outdated and lopsided reports,” it added.

Bi-Courtney stated that N10,000 was awarded as ‘punitive damages’ in favour of AMCON but that, did not represent a victory for the assets management corporation.

“Members of the public are discerning enough to reach their own conclusions about the N10, 000 damages, which is symbolic at best,” the statement added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

OPEC Agrees to Increase Oil Supply by 500,000 Barrels Per Day Ahead of Surge in Demand

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Nigeria's economic Productivity

OPEC and allies finally agreed to ease their 7.7 million barrels per day production cut by 500,000 barrels per day starting from January 2021.

This will now bring the oil cartel’s total production cuts to 7.2 million barrels per day starting from next year.

Oil prices rose after the news as the market believed the approval of Pfizer COVID-19 in the United Kingdom will kick start a series of approvals and helped restore confidence, increase business activities and demand for the commodity across the globe.

After the outcome of the meeting was made public on Thursday, Brent Crude Oil against which Nigerian oil is priced gained 1.35 percent on Friday after gaining 1.4 percent on Thursday to $49.37 per barrel at 11.35 am Nigerian time on Friday.

The US West Texas Intermediate gained 1.29 percent to $46.23 barrel on Friday.

500,000 bpd from January is not the nightmare scenario that the market feared, but it is not what was really expected weeks ago,” said Rystad Energy senior oil markets analyst Paola Rodriguez Masiu. “Markets are now reacting positively and prices are recording a small increase as 500,000 of extra supply is not deadly for balances,” she added.

Investors King increased business sentiment in the energy sector to boost investment, increase activity in the sector and most important improve crude oil demand enough to accommodate the 500,000 barrels per day extra that would be hitting the global market starting from January.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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Oil

The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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