It has been gathered that the New York and Johannesburg-listed Erin Energy filed for bankruptcy in May, as it seeks to restructure its debts and regain financial viability, a development that has put Allied Energy Plc and Camac International Nigeria Limited in some kind of mess.
It was revealed that the company collapsed following its battle with Agip, the Nigerian unit of Italian major ENI which was recognised as the operator of offshore OML 120 and 121 in February by a High Court of Lagos that upheld an arbitral ruling issued in London in early 2017 to transfer the management of OML 120 and 121 to Agip. The fields had been held by Erin Energy, a US-based subsidiary of CAMAC headed by Kase Lawal. The conflict dates back to 2012 when Agip sold its interests in the two blocks to CAMAC.
Before then, the OML 120 and 121, which included the productive Oyo oil field owned by the billionaire, was not as productive as envisaged. This got some of the Erin shareholders angry and they sued the billionaire over the deal that went awry. The shareholders claimed the CEO of Erin Energy was overpaid by almost $200 million in the Oyo Field deal that also benefited Allied Energy, another company controlled by Lawal.