Savannah Energy Share Discussion Threads

[upwego] 22/9/2023 09:31

Thanks for posting IZ.

[interzone] 22/9/2023 07:43

A follow up article in Ialtchad. It's quite lomng and covers a lot of the same ground but has an interesting bit about what they see would happen in the unlikely event of Savannah losing the arbitration:

'Four, if Savannah loses the COTCO trial, Chad will not win it. Indeed, if the arbitration chamber accedes to the argument developed by Chad of non-compliance by ESSO and Savannah with the procedure for purging the right of pre-emption of the other members of the Consortium (probably plausible hypothesis), the unenforceability of the status of shareholder of Savannah cannot have the consequence of vesting Chad with the right of ownership over the disputed fraction representing 41.06% of the capital of COTCO. Indeed, a “Chadian domestic law (law on the nationalization of petroleum assets)” cannot have “foreign effect to authorize an application to property falling under the jurisdiction of another State, in this case that of Cameroon in this regard. which concerns the rights in the capital of COTCO? ". The pre-arbitral award of July 28 clearly states this. The unenforceability or pure and simple cancellation of the Esso/Savannah transfer of COTCO assets will have the effect of restoring the parties to the state they were in before the contested transaction. The possible rejection of Savannah's status as a shareholder will result in the automatic reattribution of ownership of the shares to ESSO, which was supposed to have never sold them. What can Chad and its entire “task force” do against ESSO on the capital shares of a company governed by Cameroonian law? Nothing, except to obtain that Paul BIYA orders their nationalization for the benefit of Cameroon followed by a transfer agreement by Cameroon for the benefit of Chad. It is not forbidden to dream, but reality remains implacable.

Five, reason would advise, better, would like the Chadian sovereign and the eminence of his “task force” to put their pride, pride and flag in their pockets in order to negotiate a transaction with Savannah and/or Esso, relating to global compensation for settlement of all accounts, subject to voluntary withdrawal of all proceedings in progress and likely to arise for the same facts between the same parties. This is to avoid adding to the financial torment, that of a soap opera of humiliation of the country. There are circumstances where, as Honoré de Balzac said, “a bad settlement is better than a good trial”. The strategic, legal and financial quagmire into which the “task force” has plunged the country demands and imposes it.'

[thommie] 21/9/2023 22:48

ROFL. Trump style. Deny everything as often as possible and the people will start to believe you because they think no one (not even Trump) could be so dummb to keep saying this false things over and over again if it was a big lie!

[interzone] 21/9/2023 15:05

For info, Citybank have lodged an appeal against the recent ruling.

[1madmarky] 21/9/2023 11:20

I doubt that. Plus
"American major that it will “ compensate ” Chad for leaving without having restored the polluted soils.'" I bet that comes to about $400m , or there abouts.

[interzone] 21/9/2023 11:15

Yes, I was intrigued by that as well Lloydy. I suspect that whatever happens they'll be squirelling as much cash as possible into secret bank accounts before 2025.

[lloydypool] 21/9/2023 11:05

‘We are working to compensate ExxonMobil for its shares” interesting comment … could this be a slight opening in a door to out of court settlement? It at least seems to show they are slightly concerned about their legal position.

[gisjob2] 20/9/2023 12:53

All looks positive for SAVE, now if we can just get SS over the line and a positive outcome on the Chad lawsuit where everything seems to be going SAVE's way at the moment, where will SAVE'S share price be then I wonder ?

I'm feeling much more positive about the legal outcome now, I knew we had the law on our side but it's nice to see it following the correct path.

[interzone] 20/9/2023 09:39

Interesting editorial from one of the main periodicals in Chad, Ialtchad:

A few weeks after the Arbitration Court of Paris, France, found Savannah's complaint regarding the nationalization of its assets admissible in form, another tile has just fallen on the heads of the authorities of the transition. American justice ordered last Friday the freezing of Cotco funds at City Bank, the Gabonese subsidiary where oil revenues from Doba wells are deposited. This decision is immediate. No more movement of funds until the final outcome of the dispute. According to several sources close to the City, 150 million dollars belonging to Chad are currently frozen.

At the time, the transitional authorities had decided to go in force, under fanfare, by proclaiming publicly that the nationalization of the British company's assets was a matter of national sovereignty. And they everywhere affirmed that it was a good decision flattering the primary patriotic ego of several compatriots. Any contrary opinion reminds them that the debate is not about nationalization but about the method or the savage way of proceeding in defiance of all the elementary rules. And outside of any reflection and proposal from experts. It was a nationalization “Ab goudoura, goudoura” (with forceps).

Today in the Chadian capital, N’Djamena, the authorities have adopted two attitudes. That of the carp and the Ostrich. At the top of the state, the transitional president and his Prime Minister are silent as carp on the issue. At the second level of the transition, those who led the nationalization assault, the Minister of State, Secretary General of the Presidency (SGP), the Minister of Energy, the Minister of Finance and the entire team are doing the Ostrich by burying their heads in the oil wells of Doba. In short, it’s radio silence at all levels. Is this the solution? No.

First, we will have to resolve to come out of denial and speak publicly about this issue to enlighten Chadians by explaining the strategy to adopt and the reasons that support it. Because it is simply in the public interest.

Then, the Transitional President must sanction those who encouraged him to take the path of this wild nationalization. At a minimum, the decoration and elevation to the rank of “whatever thing” of the “oil task force” as Professor of Law and Lecturer at the University of Orléans Abdoulaye Boitaingar would say in an excellent paper titled: Savannah Affair : And the law of Iron struck Chad published in our columns, must be cancelled.

Finally, at the time of publishing this editorial, no one can measure the financial consequences of this decision on public finances, on the economy and on public interest projects. One thing is certain, this protective sentence resembles, in its financial implications, the slap in the face inflicted by the Swiss company Glencore in 2014 regarding a bogus financial arrangement which plunged the country into a severe economic crisis. At the time the Marshal punished, even if it was symbolic, those responsible. The PT should also punish those responsible and advisors in this matter. The Chadians will be grateful to him.'

htTtps://ialtchad.com/index.php/details/item/2964-affaire-savannah-gel-de-fonds-deni-tchadien?fbclid=IwAR0Bn7AzXARDXW311pYjPI_r9Xtfa4F7UCxnkIis-xtW8YOyrGBOdoE4NOg

[interzone] 20/9/2023 07:03

Post from Sajy on LSE:

Had a chat with IR today. No change to the guidance for SS, still expecting to issue AD by end of September for now. I asked if the company could extend the deadline beyond September if they needed to and was told yes they can and it is not an issue.

Asked why no Rns for the recent court case win against Citibank. Told legally advice is to not Rns news re Chad while ICC case ongoing, also do not want to add fuel to fire. Asked any chance of negotiating a settlement with Chad Gov and told highly unlikely.

Asked why no news or updates last few months, told it's been a quiet period. Company will be issuing interims report before end of September and also got the feeling other news also imminent. Asked if AK could do a presentation for the interims, request will be passed to Ak.

Although we have had no news got the impression things a progressing well behind the scenes and we are likely to get a few updates soon.

[zengas] 18/9/2023 08:17

AET came back to trading today because they published their admission document. The shareholders then vote on the deal in just over 2 weeks and then onwards to govt approval and full deal closure in that timeline.

[andrewsr] 18/9/2023 08:12

I see AET are back trading without completion of their deal. Why are shares suspended for RTO's - is it the risk of a disorderly market/insider dealing?

[1madmarky] 17/9/2023 14:37

Re: "The SAVE legal team have played a blinder here" they have, hence the surprise. Perhaps I've just been drawn to less competently run companies over the years. From my experience, even when court cases and the suchlike seem to be a slam dunk, if I have money in it there always seems to be a way to loose. Fingers and toes crossed for SS completion... GLA

[zeusfurla] 17/9/2023 09:53

Capt JTK Thanks for extracting the relevant info. The SAVE legal team have played a blinder here and headed off a real risk. Gives you some confidence in their ability at future ICC procedures.

[captain james t kirk] 17/9/2023 06:24

One element of surprise we could all possibly agree upon, is that given the nature of the disclosures during the hearing, it would be surprising if Mr. Akinsowon Dawodu retained his position at Citibank NA.

[affc21] 16/9/2023 18:43

Anybody related to Sir Humphrey Appleby(Yes Minister) here, lol

[gisjob2] 16/9/2023 18:38

I'm surprised that people are so surprised that I'm surprised about this surprising or depending on how you see it unsurprising decision.

[plentymorefish] 16/9/2023 17:46

Surprisingly, I’m surprised at peoples surprise at this surprising ruling………

[captain james t kirk] 16/9/2023 14:35

I must say I'm a little surprised by the surprise at the verdict.
This from our petition to the NY court:

"10. The Gabon Branch is a branch and subsidiary of Citibank, N.A. operating in Gabon.
As explained in more detail in SMIL’s Memorandum of Law in support of this Verified Petition,
Citibank, N.A. controls the activities and operations of the Gabon Branch, including through its
Head of Sub-Saharan Africa, Mr. Akinsowon Dawodu, who is a Citibank, N.A. Managing Director
working out of Citibank, N.A.’s London office. The Head of Sub-Saharan Africa reports directly
to Citibank, N.A. in New York; and acknowledged in writing to SMIL that “given that the accounts
in questions are held with…Citi Gabon[,]” he is the appropriate Citibank, N.A. employee to handle
the matter, and to whom “any further correspondence”; should be addressed. (See infra ¶ 53.)
Numerous public statements by Citibank make clear that the Gabon Branch is merely a “branch”
of Citibank, not a separate corporate entity. Citibank, N.A. publicly states that it serves clients in
Sub-Saharan Africa through its “branches̶1; there, and admits that it “maintains a physical
presence” throughout Sub-Saharan Africa. Citibank, N.A.’s Head of Sub-Saharan Africa touted
publicly that Citibank, N.A. “serve[s] clients in over 36 African countries[.]”

and then in section 53 and 54:

"53. Citibank, N.A., through its London-based Head of Sub-Saharan Africa, Mr.
Akinsowon Dawodu, responded in a letter dated July 10, 2023. In this letter, Citibank, N.A.
referred to the new COTCO “officialsR21; illegally installed by force by Chad as COTCO’s “duly
authorized representatives.R21; Citibank, N.A. further stated that Citibank is “currently reviewing
relevant extracts of various board resolutions provided by the COTCO Board of Directors,” but
added that “absent a court order or other injunctive relief[,]” it will “be obliged to execute any
valid instructions[.]̶1; Citibank, N.A. effectively admitted in the July 10 letter that it controls the
Gabon Branch.24 A true and correct copy of this letter is attached hereto as Exhibit 14.

54. Citibank, N.A.’s Mr. Dawodu sent a subsequent letter on July 14, 2023, in which
he claimed for the first time that the Gabon Branch is a separate corporate entity not controlled by
Citibank. A true and correct copy of the July 14, 2023 letter is annexed hereto as Exhibit 15. As
demonstrated in SMIL’s Memorandum of Law, the claim that the Gabon Branch is a separate
entity not controlled by Citibank is contradicted by numerous public statements by Citibank,
including in prior litigation in this District"

and finally this from Global Data:

"Citibank NA (Citibank), a subsidiary of Citigroup Inc, is a provider of banking and related financial services. It offers retail and commercial banking; and investment solutions."

It may take time but the facts will always out in the end.

[gisjob2] 16/9/2023 13:43

Brilliant and totally unexpected ruling in SAVE's favour, I expected the court to find Citibank Gabon was it's own entity separate from Citibank NA. I thought the only reason SAVE's legal team brought this legal case was to highlight the issue and apply pressure. The ruling couldn't be better for SAVE.

[1madmarky] 16/9/2023 11:34

Yes thanks for the update. Pretty surprised to say the least. Fingers crossed wrt ICC.

[zeusfurla] 16/9/2023 10:22

Thanks Interzone and agree with Thommie's views as always. It looks like SAVE now have another potential layer of financial protection through Citibank NA should their assets be threatened further or completely lost in Gabon.

[unnd] 16/9/2023 08:44

Wow thanks for posting Interzone much appreciated.
It is great news albeit unexpected by me.