BUA Group, Kainos Exploration On Collision Course Over $20m OML 110 Contract

BUA Group is planning a criminal defamation suit against Kainos Exploration Managing Director, James Onyejekwe, who alleged that BUA was awarded Oil Mining Lease 110 fraudulently by Minister of State for Petroleum, Timipre Sylva.

A statement allegedly signed by the MD of Cavendish Petroleum Limited, Ibrahim Mai Deribe, had accused Sylva of awarding $20m OML 110 to his ‘friend,’ Abdul Samad Rabiu, the Chairman of BUA company.

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But Mai Deribe denied signing such a statement as well as any involvement in the report.

BUA said on Monday that its independent investigation revealed that the source to the “false, defamatory, malicious and libelous ” statement was Onyejekwe of Kainos.

The company claimed that Onyejekwe was neither an executive nor spokesperson on behalf of Cavendish Petroleum.

BUA said, “We have therefore instructed our legal team to immediately commence criminal defamation proceedings against the person of Mr. James Onyejekwe, who is the originator of the malicious letter fraudulently attributed to Cavendish Petroleum against our person, with damages.”

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The company said the action was necessary to protect its image, adding there was no justification for Kainos MD to single out the company in a business dispute that had no link with BUA.

Also the company is suing the online newspaper that first published the report for failing in its duty to clarify the information from BUA.

The OML 110, located offshore Ondo State, South West Nigeria was an oil block previously owned by Cavendish Petroleum Limited before its revocation alongside four other blocks in 2019.

Cavendish Petroleum, an indigenous company, was first awarded the block in 1996.

But Cavendish had secured the funding required to pay off the outstanding debts with the aim of getting back the license and commence production, according to the statement that generated the chaos.

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The purported statement claimed that it has not been easy to secure the oil block following the role of Sylva who oversees the Petroleum Ministry and other powerful individuals.

Attempt to reach Kainos MD, Onyejekwe, was unsuccessful as an electronic mail sent to him was not replied as at 6:46 PM on Monday.

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