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 of InterOil, alleged that ExxonMobil conspired to undervalue appraisals of natural gas fields in Papua New Guinea to reduce the payments owed to investors under the CRPA.
In this years-long dispute, the 2022 complaint filed against ExxonMobil was ultimately dismissed because the Court held that any suit against the company under the CRPA could only be brought by holders representing more than 25% of the total former shares of InterOil. The case was refiled in 2024 after the Plaintiffs acquired and became the holders of the necessary 25%. And the recent decision to deny ExxonMobil’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 is Phil E. Mulacek, Five Sterling L.P., The Sterling Mulacek Trust, Petroleum Independent and Exploration LLC. V. ExxonMobil Corporation, ExxonMobil Canada Holdings ULC. in the Supreme Court of the State of New York County of New York: Commercial Division Part 53; index number 659043/2024. The Plaintiffs are represented by a Boies Schiller Flexner trial team, led by Jenny Kim.
