Local tycoon locks horns with three foreign oil, gas companies | nyula blog

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Sunday, January 31, 2016

Local tycoon locks horns with three foreign oil, gas companies

 Three foreign companies Ophir Energy PLC, Ophir Services PTY Limited and BG Tanzania Limited are at odds with local businessman over interest rights in three offshore gas blocks in Mtwara.
 
Last week, the High Court, Commercial Division, ordered them to respond to 27 questions posed by the businessman Moto Mabanga after the court accepted his application of interrogatories (request for further information).
 
Through his advocates Gabriel Mnyele and Jethro Turyamwesiga, the local businessman questioned whether Ophir had declared his interests to the government as required in the three signed consultancy agreements over Blocks One, Three and Four.
 
He also sought answers on the relationship between Ophir Energy PLC, Ophir Services PTY Limited, on the one part and Ophir (Block 1) Limited, Ophir (Block 3) Limited and Ophir (Block 4) Limited and if the named companies are not subsidiaries of the said two gas exploration companies.
 
Mabanga also wanted to know whether Ophir has any interests in the three block companies and who the directors and shareholders are. He also sought to know whether Ophir admits that Ophir (Block 1) Limited, Ophir (Block 3) Limited and Ophir (Block 4) Limited were incorporated in Jersey, US.
 
He further sought to know the legal status of the three companies in Tanzania, whether they were registered by April 1, 2010 and which of them in the Ophir Group sold 20 per cent shares to Pavilion Energy PTY, another company which was dragged into the case as a Necessary Party.
 
However, Principal Officer with Ophir Nicholas Cooper objected to respond; “I object to answer the question of the relationship between the defendants on the ground that it is not exhibited bona fide for the purpose of the suit.”
 
“Further, I object to answer the question whether Ophir did declare the plaintiff’s (Mabanga) interests to the government of Tanzania for being irrelevant at this stage,” he declared.
 
On his part, BG Head of Legal Affairs, Conor Skinner said some of the questions are vague and unacceptable because the plaintiff is seeking an admission based on unspecified assurances allegedly made by one Dr Alan Stein, who is not a party to the suit though he is the former Chief Executive Officer with the Ophir Company.
 
The businessman had also wanted to know whether Ophir agreed with Dr Stein when he described Mabanga as being in the ‘Ophir family’ at the time of signing the bid documents for Block One and that if the comment meant he had legitimate interest in Ophir.
 
Mabanga also wanted Ophir to admit that they requested him to negotiate with the government on Ophir’s behalf for favourable gas terms and that he did.
 
According to him, he led an Ophir delegation from Dar es Salaam when government officials went to South Korea for the inauguration ceremony of a gas drilling ship named West Polaris.
 
He further wants Ophir to admit that the Korean trip created opportunity for the company to invest more than 150 million US dollars for the gas exploration and discoveries in Blocks One, Three and Four.
 
Mabanga sought to know whether Ophir admits that he was the key person in its securing of the three gas blocks and hence  he is very valuable to Ophir and BG. He maintained that he was only “red flagged” and considered an “obstacle to the transaction” during the advanced stages of negotiations with BG.
 
The local businessman additionally sought to know whether Ophir admits that the negotiations with BG were not disclosed to him as ethically and contractually obliged in their three agreements.
 
He charges that a trip that he made to Houston Texas was set up by Dr Stein set up who led him to believe that the trip was meant for him to meet with Exxon Mobil for an important due diligence exercise in his Ophir interests, but that it was a plot hatched by Ophir and BG to defraud him.
 
He also sought to know whether Ophir admits that xenophobic or racial considerations were the main reason for their bankers and lawyer’s nervousness about having him as their local partner in Tanzania.
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