Alpha,
There are two separate issues here.
IMHO, one is not dependent on the other and they are not interrelated issues.
On the one hand, you have the Senegal Government deciding whether WPL is a suitable JV partner.
On the other hand, you have a Private Contract dispute between FAR and COP.
Dealing on the second issue first, COP and WPL claims to have completed this deal - that means they have completed all the necessary paper work to register WPL as the new owner of COP Senegal BV.
This is a similar process you would go through in Australia, with ASIC. You lodge the necessary forms to register new owners, directors and secretary.
I have no doubt this would have been completed, otherwise WPL would not have paid $440M to COP USA for this.
For FAR to now buy COP Senegal BV (those 35%), it would need to go to court to prove they were WRONGED by COP and then get a separate court order (whether the Arbitration Court have jurisdiction over this, I am not too sure), instructing WPL to sell back COP Senegal BV to COP USA, who will in turn offers this assets to FAR to PE.
That is how cumbersome this process is.
What FAR should have done was raise an injunction during the mediation process - ie. to prevent COP from selling its assets (COP Senegal BV) to WPL whilst the parties were in mediation and arbitration.
FAR did not do this.
Any way, in relation to the first issue. Even if the Gov of Senegal was to come out and say to WPL that they were Not a suitable partner in this Joint Venture.
The Gov of Senegal CAN NOT instruct WPL to sell COP Senegal BV to FAR. It can provide a time frame where WPL must sell out its interests in the Joint Venture.
Now, if WPL was deemed not a suitable partner in this JV, it can decide to sell its COP Senegal BV to whoever it like - for example; to BHP, TOTAL, etc and at any price it can get for it.
This is where the indemnity clause with COP plays out - ie. if WPL can not sell to a third party at greater value than they had paid for it, they can exercise their right to sell it back to COP, for the price they had paid COP USA.
The Gov of Senegal can not take side in a private dispute between parties of the JV.
That's why I find it surprising to read from Ian and FAR proxies suggesting this is how it might play out.
If it was to play out the way they suggested, it would open up allegations of Corruption against the Gov of Senegal.
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