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Al Fayed given oil wells payout | Al Fayed given oil wells payout |
(about 1 hour later) | |
Harrods boss Mohamed Al Fayed has won a stake in £7m profits from oil pumped from under his estate in Surrey without his knowledge. | Harrods boss Mohamed Al Fayed has won a stake in £7m profits from oil pumped from under his estate in Surrey without his knowledge. |
The High Court was told Star Energy owned three wells drilled diagonally at its Palmers Wood oilfield which passed under Mr Al Fayed's land in Oxted. | The High Court was told Star Energy owned three wells drilled diagonally at its Palmers Wood oilfield which passed under Mr Al Fayed's land in Oxted. |
Mr Al Fayed did not know for many years that the wells ran 800ft beneath Barrow Green Court and Barrow Green Farm. | Mr Al Fayed did not know for many years that the wells ran 800ft beneath Barrow Green Court and Barrow Green Farm. |
The court ruled the company had trespassed on Mr Al Fayed's land. | The court ruled the company had trespassed on Mr Al Fayed's land. |
But Mr Justice Peter Smith said Mr Al Fayed had no claim to the oil itself, which belonged to the Crown. | But Mr Justice Peter Smith said Mr Al Fayed had no claim to the oil itself, which belonged to the Crown. |
After the hearing, Mr Al Fayed said: "I am satisfied with the decision. Justice has been done." | After the hearing, Mr Al Fayed said: "I am satisfied with the decision. Justice has been done." |
The multi-millionaire sued Star Energy through his company Bocardo, claiming 12.5% of the income from the wells. | The multi-millionaire sued Star Energy through his company Bocardo, claiming 12.5% of the income from the wells. |
Commercial confidentiality | Commercial confidentiality |
He was awarded 9% of the proceeds since 2000 and the same from future income. | He was awarded 9% of the proceeds since 2000 and the same from future income. |
Production from the wells, initially 9,000 barrels a month, began in October 1990 but had now reduced to 2,000 barrels, the judge said. | Production from the wells, initially 9,000 barrels a month, began in October 1990 but had now reduced to 2,000 barrels, the judge said. |
Mr Al Fayed first noticed the oil rig next to his estate in 1992 and instructed his solicitors to find out what was happening. | Mr Al Fayed first noticed the oil rig next to his estate in 1992 and instructed his solicitors to find out what was happening. |
They were told the oil company could not reveal whether the bore hole passed under the estate for reasons of commercial confidentiality. | They were told the oil company could not reveal whether the bore hole passed under the estate for reasons of commercial confidentiality. |
It was not until after Mr Al Fayed saw records held at the British Geological Survey in 2006 that he realised the pipelines were beneath his land. | It was not until after Mr Al Fayed saw records held at the British Geological Survey in 2006 that he realised the pipelines were beneath his land. |
'Landmark legal decision' | 'Landmark legal decision' |
The judge accepted that the oil company was trying to conceal that drilling was taking place under Mr Al Fayed's estate. | The judge accepted that the oil company was trying to conceal that drilling was taking place under Mr Al Fayed's estate. |
"They expected trouble if he found out," he said. | "They expected trouble if he found out," he said. |
And he rejected the oil company's argument that because there was no disturbance on the surface there was no trespass. | And he rejected the oil company's argument that because there was no disturbance on the surface there was no trespass. |
He limited the claim to the year 2000 because of statutory bars and because Bocardo could have discovered the pipeline earlier if it had employed proper experts. | He limited the claim to the year 2000 because of statutory bars and because Bocardo could have discovered the pipeline earlier if it had employed proper experts. |
Mr Al Fayed's lawyer, Julian Cridge, of city law firm Denton Wilde Sapte, described it as a "landmark legal decision". | |
"It's the first case to consider trespass of land at great depth," he said. | "It's the first case to consider trespass of land at great depth," he said. |
"It may mean that other landowners will consider whether they have claims against companies who have drilled or who try to drill under their land. | "It may mean that other landowners will consider whether they have claims against companies who have drilled or who try to drill under their land. |
"We are very pleased by the outcome after what has been a long and hard-fought battle since a claim was issued two years ago." | "We are very pleased by the outcome after what has been a long and hard-fought battle since a claim was issued two years ago." |