The Supreme Court of the State of New York recently denied ExxonMobil’s motion to dismiss a lawsuit that claims it breached a Contingent Resource Payment Agreement (CRPA) it held with InterOil Corporation, an oil and gas company with natural gas interests in Papua New Guinea that was acquired by Exxon in 2017.
The Plaintiffs, which were investors ofInterOil, alleged thatExxonMobilconspired to undervalue appraisals of natural gasfields in Papua New Guinea to reduce the payments owed to investors under the CRPA.
In this years-long dispute, the 2022 complaint filed againstExxonMobilwas ultimately dismissed because theCourtheld that any suit against the company under the CRPA could only be broughtbyholders representing more than 25% of the total former shares ofInterOil. The case was refiled in 2024 after thePlaintiffs acquired and became the holders of the necessary 25%. And the recent decision to denyExxonMobil’s motion to dismiss demonstrates that the Plaintiffs meet the necessary requirements under the CRPA to advance its claims against the oil giant.
The case isPhil E. Mulacek, Five Sterling L.P., The Sterling Mulacek Trust, Petroleum Independent and Exploration LLC. V.ExxonMobilCorporation,ExxonMobilCanada Holdings ULC.in theSupremeCourtof the State of New York County of New York: Commercial Division Part 53; index number 659043/2024. The Plaintiffs are representedbya Boies Schiller Flexner trial team, ledbyJenny Kim.
About The Author
