Brenham Oil & Gas, Inc. v. TGS-NOPEC Geophysical Company

472 S.W.3d 744, 2015 Tex. App. LEXIS 7953, 2015 WL 4591788
CourtCourt of Appeals of Texas
DecidedJuly 30, 2015
DocketNOS. 01-13-00349-CV & 01-13-00610-CV
StatusPublished
Cited by20 cases

This text of 472 S.W.3d 744 (Brenham Oil & Gas, Inc. v. TGS-NOPEC Geophysical Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brenham Oil & Gas, Inc. v. TGS-NOPEC Geophysical Company, 472 S.W.3d 744, 2015 Tex. App. LEXIS 7953, 2015 WL 4591788 (Tex. Ct. App. 2015).

Opinion

OPINION

Michael Massengale, Justice

Appellant Brenham Oil & Gas, Inc. filed suit against TGS-NOPEC Geophysical Company and ENI S.p.A. Brenham Oil had pursued an oil production agreement with the Republic of Togo, but it alleged those efforts failed due to the tortious interference of TGS, a company that gathers and markets seismic data for the hydrocarbon industry. ENI, an Italian oil company, was accused of aiding and encouraging TGS’s tortious conduct.

ENI filed a special appearance and the claims against it were dismissed. TGS, a Delaware corporation headquartered in *751 Houston, successfully moved to dismiss based on forum non conveniens. Brenham Oil appealed the dismissal of both parties. TGS cross-appealed arguing that the trial court also should have dismissed Brenham Oil’s claims for lack of standing or want, of subject matter jurisdiction over Togolese real property.

We affirm the dispositive orders of the trial court and dismiss the cross-appeal as moot.

Background

Brenham Oil & Gas, Inc. is a Texas corporation with its headquarters near Houston. The company, with its highly credentialed leadership and extensive experience in the oil-and-gas business, sought international oil-and-gas exploration investment opportunities.

In early 2010, the discovery of a large oil field off the coast of Ghana prompted Brenham Oil to investigate prospects in the waters of the neighboring country of Togo. Brenham Oil’s executives, including its President, Scott Gaille, felt they were in luck: one of them was friends with an old schoolmate of the Togolese president. With the help of this well-placed friend, Brenham Oil arranged for Gaille to meet in Togo with the nation’s Energy Minister as well as its Director of Hydrocarbons, Léopold Mebah Siah. The May 2010 meeting included discussion of the possibility that Brenham Oil would enter into a production-sharing contract for hydrocarbons located in an area of Togolese waters denominated “Block 2.” Brenham Oil was instructed that it could obtain seismic data on Block 2 by contacting TGS-NOPEC Geophysical Company. Togo had licensed this data to TGS for the purpose of marketing it to exploration companies.

Unbeknownst to Brenham Oil, Siah had written to Roger Welch, TGS’s manager for Africa, asking for information about Brenham Oil prior to Gaille’s arrival in Togo. Welch, who lived and worked in London, sent the following email to Siah from his London office:

I have asked the Houston office to check on Brenham Oil & Gas also.
Brenham Oil & Gas is a very small company which has mineral rights on a permit in Texas, they do not operate; the permit is operated by Anadarko. Brenham appears to be a subsidiary of a larger company American International Industries which deals in real estate, plastic products' and some well service equipment, they have no experience in either the upstream or downstream oil & gas industry.
None of the management team have any experience in the oil & gas industry. We do not recommend that Brenham be considered for any petroleum exploration permit in Togo.
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As I mentioned TGS is interpreting all of the data we have acquired offshore Togo and integrating this with our regional data base off Ghana and Benin. Within a month we will have a report showing prospects offshore Togo showing their similarities with the Jubilee field offshore Ghana.
TGS is constantly talking with the serious oil companies exploring the Ghana, Togo & Benin margin, we will be showing the report to these companies and more.
At present the companies looking to make large investments in this margin are Chevron, Total, ENI Repsol-YPF, StatOilHydro etc.
Let’s do a promotion to these types of companies.

After the meeting with Gaille, Siah wrote an email back to Welch:

It was a good meeting with M. Gaille from Brenham Oü & Gas company. We *752 also the minister an[d] I noted that it si [sic] very small unexperienced company. We gave them copies of model PSA and hydrocarbon code. • Also we told them to make contact with PGS [sic] for further information in terms of data evaluation and data licencing. Please can you brief us on data package price, licencing procedure and details of volume of data to be shown and licenerd [sic].
Thank you for your precious cooperation on this matter.

Behind the scenes at TGS, the news that Brenham Oil was talking to Togo about Block 2 was not welcome. Welch was part of TGS’s Africa, Middle East, and Asia Pacific (“AMEAP”) team and subordinate to David Hicks, the divisional vice president. Prior to answering Siah’s inquiry about Brenham Oil, Welch had emailed Hicks and fellow AMEAP team member Kim Abdallah, both of whom worked in Houston. Welch wrote, “Do you know anything about Brenham Oil & Gas.... They are meeting with minister tomorrow to try and get block 2. If it is a small co. they will not buy data and try to promote block — not good for us or Togo.”

Brenham Oil dispatched its vice president, L. Rogers Hardy, to examine the data located at TGS’s Houston headquarters. Hardy contacted Hicks, visited TGS’s Houston office, and entered into a confidentiality agreement to view the information. When Hicks reported that the “guy from Brenham” had come by inquiring about the data, Welch emailed back, “I’ve already told Togo not to deal with them.”

On May 17, Brenham Oil learned of the negative evaluation Welch had given to Siah. Gaille responded by emailing Welch, attaching a short biography to show his competence. Gaille wrote:

I wanted to provide you with information regarding , my background. Of course,'you have not heard of Brenham Oil & Gas. Brenham Oil & Gas-is á new vehicle that I am using to place capital in international exploration opportunities, and i am working with my network of contacts at the large oil' and gas companies and governments to acquire exploration block interests. ' We expect to build a portfolio of approximately' 10 wells over the next three years. Our goal is exposure of public and private capital to a series of high potential wells....
We would very much appreciate you and your team’s support in our efforts in Togo and elsewhere, and we understand it is important that you Have an accurate understanding of our background and experience.. If you need a reference or have any further questions, please do not hesitate to contact me.

Four days later, Abdallah sent' an email to two Houstón-based TGS colleagues: AMEAP team member Juan Santana and sales representative Julie Halbison. Abdal-lah instructed them how to price the data for Brenham Oil, writing, “make it high.”

Welch later echoed that sentiment.

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Bluebook (online)
472 S.W.3d 744, 2015 Tex. App. LEXIS 7953, 2015 WL 4591788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brenham-oil-gas-inc-v-tgs-nopec-geophysical-company-texapp-2015.