OpeOluwani Akintayo– Lagos — A Federal High Court in Lagos has ordered the Nigerian National Petroleum Corporation, NNPC; Ministry of Petroleum Resources; and National Petroleum Investment Management Services, NAPIMS; to stop crude oil allocation to Addax Petroleum.
The presiding judge, Justice Tijjani Ringim, made the order sequel to a motion for mareva filed and argued by the counsel to the Federal Government, Romeo Ese Michael of D.A Awosika SAN and Co.
The Federal Government and the Attorney-General of the Federation are the plaintiffs in the suit while Addax Petroleum Development of (Nigeria) Limited and Addax Petroleum Exploration (Nigeria) Limited are the first and second defendants/respondents.
The NNPC, Ministry of Petroleum Resources, Department of Petroleum Resources and NAPIMS are the third to fifth respondents in the suit respectively.
The court in its judgement, granted the Federal Government’s application barring the NNPC and other oil and gas government agencies from allocating crude to Addax.
The crude, according to the government’s motion, is from that explored/produced from Oil Mining Leases, OMLs, 123, 124, 126 and 137 as stipulated in the Production Sharing Contract, PSC, of 1998 between NNPC and Addax.
The judge dismissed the defendants’ notice of preliminary objection filed through their counsel, I.O Olateru-Olagbegi .
He held that the suit was properly instituted and should be allowed to be heard at trial.
The court agreed with the government that it would serve the interest of justice for the rest to be preserved owing to the government’s claim that Addax Petroleum is taking steps to liquidate some of its subsidiaries in Nigeria.
Justice Ringim said: “It will serve the interest of justice if this application is granted because the applicant has established that there is fear of dissipating the rest before the hearing and determination of the substantive suit
“I find that this application is meritorious and same ought to be granted. Accordingly, it is hereby granted as prayed.”
He adjourned the matter till March 21, 2022 for mention.
The judge, however, ordered the government to swear to an affidavit that it would indemnify the defendants in the event that it misled the court to grant the injunction.
Other interim reliefs sought by the plaintiffs, which were also granted by the court, include a prayer to suspend “approval relating to budget expenditure and cost, howsoever described in regard to the interest of the 1st and 2nd respondents in the aforementioned OMLs pending when the 1st and 2nd respondents furnish and file before this court verifiable bank guarantee from commercial banks in Nigeria to completely cover the monetary claims of the plaintiffs in this action.
“An interlocutory order restraining the 3rd, 4th and 5th respondents from allowing the 1st and 2nd defendants/respondents to transfer or assign their interest in the OMLs 123/124 and 126/137 pending when the 1st and 2nd respondents furnish and file before this court verifiable bank guarantee from commercial banks in Nigeria to completely cover the monetary claims of the plaintiffs in this action.
“An interlocutory order of this honourable court restraining the 3rd, 4th and 5th respondents from dealing with the 1st and 2nd defendants/respondents with respect to OMLs 123/124 and 126/137 pending when the 1st and 2nd respondents furnish and file before this court verifiable bank guarantee from commercial banks in Nigeria to completely cover the monetary claims of the Plaintiffs in this action.
“An interlocutory order of this honourable court compelling the 3rd, 4th and 5th Respondents to file affidavit of fact within 7days of service of this application or any order of this honourable court on them detailing the 1st and 2nd defendants’ asset, property, monies or instrument and any other items with them pending the hearing and determination of this suit.”
SweetcrudeReports learnt that Addax had appealed the ruling.
Follow us on twitter
