Abu Dhabi: The National Bank of Abu Dhabi (NBAD) confirmed on Sunday reports on a UK court ruling against British energy company, BP, which must now pay over $68 million (Dh250 million) to NBAD.
In a statement posted to the Abu Dhabi Securities Exchange (ADX), NBAD indicated that the ruling could still be appealed, though.
“It should be noted that this sentence is initial and could appealed according to the applicable laws in the United Kingdom,” as per the bank’s statement to the bourse.
On Wednesday, a UK court ruled that BP must pay more than $68 million to NBAD in a case stemming from the closure of Morocco’s Samir refinery in 2015, Reuters reported.
BP sold crude to Samir in 2014 that was not paid for, and NBAD took on 95 per cent of that debt. The London High Court ruled that BP did not have the right to pass on the debt, and said NBAD was entitled to claim from BP $68.9 million in addition to interest that Samir failed to pay the bank, as per the Reuters report. It added that efforts to restart the refinery have failed so far.
According to the contract between BP and Samir, there could be no assignment of obligations or rights without consent, and Samir’s consent had not been obtained.