A New Threat Facing International Oil and Gas Companies: Garnishment of Royalties and Obligations Owed to National Oil Companies
Article from: OGEL 3 (2006), in Africa
Introduction
Several lawsuits pending in the United States will have a significant impact on oil and gas companies that operate in countries rich in resources and with unpaid foreign debt. Companies called vulture funds have filed lawsuits against oil and gas producing nations to collect on defaulted sovereign debt that the vulture funds purchased for pennies on the dollar. The vulture funds are forcing oil and gas companies into these lawsuits through a pre-judgment remedy called a garnishment action, asking courts to prevent the companies from delivering legal and contractual in-kind oil royalties ...