White Nile has to disclose contract details before Total claim
May 22, 2006 (PARIS) — French oil major Total SA has gained the right to get British holding company White Nile Ltd to unveil documents, in a pre-action disclosure proceeding ahead of a potential legal suit against the British company.
A British court Monday ruled that White Nile must produce details demanded by Total, according to legal document provided by Total, Dow Jones reported.
White Nile in February 2005 signed a deal with the government-in-formation of South Sudan, which awarded it a 60% stake in a oil field which is part of a larger area claimed by Total, Marathon Oil and the foreign arm of Kuwait Petroleum Corp. The remaining 40% is held by Nile Petroleum Corp., the southern government’s national oil company.
Total has been claiming the rights to the field, saying it signed with the central government in December 2004 a renewed contract on the acreage it abandoned in the 1980s because of the civil war.
The French major says its deal is valid while White Nile’s deal breaks the peace agreement.
Total has asked White Nile to unveil documents which would answer questions such as when the Directors of White Nile first made contact with the Southern Sudanese government in relation to negotiating the oil concession, with whom the Directors had contact, what was the nature and the scope of discussions and proposal, and did the Directors have prior knowledge of Total’s rights to the field, the document says.
A Total spokesman said: “we feel this is a positive step toward the resolution of the issue.”
White Nile could’t be immediately reached for comment.
(ST)