The UK Court of Appeal has overturned a 2023 High Court ruling, finding that an $84.7 million dividend paid by UKCS8 before its collapse was an unlawful transaction. This decision ends a long-running dispute where Taqa Bratani and Spirit Energy alleged the dividend, funneled to a Viaro Energy-controlled company, left UKCS8 insolvent and unable to meet decommissioning costs before its sale for $1.

Legal Ruling and Case Status

The appeal judges identified legal and factual errors in the original judgement, ruling the dividend could not reasonably be seen as benefiting UKCS8. The case has now been referred to the Commercial Court to determine the remedies available to Taqa and Spirit. Both companies have expressed satisfaction with the appeal outcome, while Viaro Energy stated it is reviewing the decision and its next steps.

Broader Context for Viaro Energy

This legal setback coincides with other challenges for Viaro. Its CEO faces a separate embezzlement claim in the UK. Furthermore, the company's ambitions to operate newly acquired North Sea assets are facing regulatory delays. The North Sea Transition Authority (NSTA) has delayed its usual operator approval process and has expressed "concerns" regarding a licence transfer related to Viaro's planned acquisition of Deltic Energy. Additionally, Viaro's major 2024 deal to acquire assets from Shell and ExxonMobil has not been completed as planned by year-end.