Major investors in Kenya’s new oil industry have fallen out bitterly, and have decided to air their dirty deals in papers filed in court.
The companies have been contracted by the prospector — Tullow Oil.
Their dispute is likely to affect the industry, which was recently hit by revenue demands of Turkana residents that led to the temporary suspension of oil trucking to the coast.
Former National Oil Chief Executive Mwenda Nyaga has opened a no-holds barred court battle with British businessmen Philip Moore and Craig Bridgman over dealings with East African Oilfield Services (EAOS), a firm registered in the Seychelles.
Mr Nyaga wants EAOS compelled to pay him $300,000 (Sh30 million) as a refund for his shares as he seeks to exit the deal with the British businessmen.
Both sides claim that their counterparts are playing dirty, and the mudslinging has landed in court filings. Court documents seen by Nation indicate that each side may have thrown a punch below their opponent’s belt.
EAOS’ two accounts at NIC Bank were frozen in January after Mr Bridgman and Mr Moore made withdrawals to the chagrin of their local business partners-turned foes.
Mr Moore and Mr Bridgman have counter-sued, and they want Mr Nyaga and Mr James Mbote compelled to pay EAOS $2.51 million (Sh251 million). In their affidavits, the Britons accuse their local counterparts of sabotaging EAOS by stealing light towers that are usually hired out for revenue.
Mr Nyaga says after being accused of the theft, he and Mr Mbote followed up with TradeWinds Aviation, which owns the warehouse. TradeWinds told them that the light towers were in the warehouse on February 26, which they confirmed through a visit to the airport storage facility.
At the time, Mr Nyaga’s Oilfield Movers was supplying light towers to Tullow in Turkana. He transferred 10 light towers valued at $150,000 (Sh15 million) to EAOS in exchange for the shares.
“The plaintiffs were at all times aware that there were 1.4 million shares outstanding. Further, they were aware that there were 850,000 shares issued for $850,000 (Sh85 million) and an additional 150,000 shares issued in exchange for Oilfield Movers transferring 10 light towers to EAOS,” Mr Moore and Mr Bridgman say in court filings.
Some months later, Mr Nyaga through another firm he owns — Oil and Energy Services — became a consultant for EAOS.
Things appeared to be running smoothly, and EAOS even agreed to be Oil and Energy Services’ cotenant at the Commodore Suites along Nairobi’s Ngong Road. The boat was first rocked when Mr Moore and Mr Bridgman opted to terminate the office sharing agreement, arguing that EAOS was paying for 80 per cent of the lease yet it only occupied 20 per cent of the space.
In January, Mr Moore and Mr Bridgman during a board meeting resolved to oust Mr Nyaga and Mr Mbote, then moved out of the shared office without informing their co-shareholders where EAOS was heading to.