LONDON, Jan. 26, 2015 /PRNewswire/ -- Canadian oil
company James Bay Resources Limited (JBR) (the "Company") has
retained Amsterdam & Partners LLP in connection with the
Company's petroleum interests in Nigeria.
The Company, together with its indigenous Nigerian partners,
owns Crestar Integrated Natural Resources Limited ("Crestar"), the
winning bidder for a 45% participating interest in active Oil
Mining Lease No. 25 ("OML 25") in the Niger Delta region, offered
by joint venture partners The Shell Petroleum Development
Company of Nigeria Limited, Total E&P Nigeria Limited, and
Nigerian AGIP Oil Company Limited (collectively the "Shell
JV"). Crestar is a special purpose Nigerian registered
company managed by expert Nigerian oil and gas professionals with
vast experience in all segments of petroleum operations in
Nigeria.
Crestar paid the full purchase price for the Shell JV's interest
in OML 25 into an escrow account with JP Morgan as of
June 2014, and closing awaits only
authorization by Nigerian government officials. However, the
Nigerian National Petroleum Corporation ("NNPC") has blocked the
closing by wrongfully attempting to exercise preemption rights that
are patently expired and were expressly waived. Further,
Crestar has evidence that NNPC is attempting to fund its own
acquisition with monies obtained from private third parties in
exchange for lucrative interests in OML 25, which arrangement would
almost certainly violate several Nigerian laws regulating
government borrowing. Nigeria's controversial Minister of Petroleum
Resources – the recently-appointed President of OPEC, and the
Chairman of NNPC – appears to support what is NNPC's first-ever
exercise of preemption rights in the history of the Shell JV's
divestment from Nigeria. Under pressure from NNPC and the
Minister, the Shell JV delivered a letter to Crestar on
January 22, 2015, purporting to terminate Crestar's
contractual right to acquire the Shell JV's interest in OML 25,
paving the way for NNPC to effect its illegal scheme.
Robert Amsterdam, founder of
Amsterdam & Partners LLP, has more than 30 years of experience
helping companies combat improper government takings around the
world, including in Nigeria,
Zambia and various other countries
in the Global South. "The fact that this saga is playing out
on the cusp of a hotly-contested election promises more than just a
legal fight, it guarantees a demand for political review at the
highest levels," Amsterdam noted. Amsterdam's law firm has
advised noteworthy clients across the political spectrum in
Nigeria, including Nasir El-Rufai, former Minister of the Federal
Capital Territory of Abuja. "Moreover, interest in the
handling of OML 25 is not limited to Nigeria. Any attempt to
defeat Crestar's rights will be scrutinized globally, including by
the various international organizations dedicated to the fight
against corruption."
Crestar is owned 55% by Crestar Hydrocarbon Exploration and
Production Company Limited, a fully indigenous company owned
exclusively by Nigerian nationals. The remaining 45% of
Crestar is owned by James Bay Resources Limited, a Canadian Stock
Exchange-listed natural resources company headquartered in
Toronto, now at liberty to
disclose publicly its role relating to OML 25. Crestar's
shareholder structure is expected to adjust upon finalization of
its interest in OML 25, to reflect an agreed ownership stake earned
by the funder.
Amsterdam & Partners LLP is an international law firm with
offices in London and
Washington.