Squire Patton Boggs has achieved a significant victory for Société Nationale de Raffinage S.A. (Sonara), the Cameroonian state-owned oil refinery. Sonara defeated the entirety of the claims bought by Sahara Energy Resource Limited (Sahara) in the England & Wales Commercial Court, which were initially valued at over $132 million and €5 million, before later being revised down to $101 million.
Sahara brought claims for a range of financing costs, including incremental interest, penal charges and FX losses allegedly incurred as a result of Sonara’s late payments for four crude oil cargoes delivered under a 2013 contract. A key focus of the case was whether a “Joint Report” of a 2019 reconciliation meeting constituted a binding settlement of Sahara’s claims.
Squire Patton Boggs inherited the case mid-way through proceedings at which point the trial, originally listed for March 2024, was adjourned until October 2024.
Following that trial, Mrs Justice Cockerill issued her judgment in which she found that the Joint Report constituted “at best” an agreement to agree, and as such was unenforceable under English law. In respect of Sahara’s claims as brought under the 2013 contract, the Judge found that the FX losses were unrecoverable on grounds of remoteness and that all claims were time barred. Accordingly, the Judge dismissed the entirety of Sahara’s claims.
The team was led by partner Timi Balogun, Ian Debbage (director), Henry Goldschmidt (senior associate), Daniel Ajuh and Henry Spence (associates).