The court ruling seeks to secure First Bank’s financial interests in GHL, which allegedly owes the bank significant debts. The defendants include GHL, the owners, operators, and master of the FPSO vessel. According to FBN, the bank guarantee is critical to safeguarding its financial exposure and securing its claim against GHL.
Port Harcourt, Nigeria – The Federal High Court in Port Harcourt has ordered the arrest of the crude oil cargo onboard the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni, located in Rivers State. The court’s decision stems from an ex parte motion filed by First Bank of Nigeria Limited (FBN) against General Hydrocarbons Limited (GHL).
Justice E.A. Obile issued the order on January 9, 2025, following FBN’s demand for a $19.75 million bank guarantee and payment of associated costs before GHL or its affiliates can tamper with or conduct transactions involving the crude oil onboard the vessel.
Legal Grounds for Arrest
The court ruling seeks to secure First Bank’s financial interests in GHL, which allegedly owes the bank significant debts. The defendants include GHL, the owners, operators, and master of the FPSO vessel. According to FBN, the bank guarantee is critical to safeguarding its financial exposure and securing its claim against GHL.
In an affidavit submitted to the court, Temitayo Osundosumu, a representative of FBN, stated that the bank guarantee provided by GHL is crucial to protecting FBN’s financial investments and debts owed by the oil and gas company. The plaintiff’s lawyer, E.C. Unachukwu, argued that an urgent court order was necessary to prevent the crude oil from being wasted, dissipated, or diverted.
The court granted the following orders:
The arrest of the entire cargo of crude oil onboard the FPSO vessel Tamara Tokoni, pending the provision of a bank guarantee of $19,752,304.84 from a first-class Nigerian bank or further orders of the court.
Authorization for officers of the Nigerian Navy, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Maritime Administration and Safety Agency (NIMASA), and the Harbour Master of the Nigerian Ports Authority (NPA) to assist the Admiralty Marshall in enforcing the order. The agencies are also directed to maintain surveillance over the vessel to prevent interference until the court’s orders are complied with.
Legal Battle Intensifies
The case, which highlights the escalating legal battle between FBN and GHL, has been adjourned to February 10, 2025, for mention. The court has cautioned all parties against interfering with the crude oil onboard the vessel without proper authorization. Law enforcement has been directed to detain the cargo under custody until further notice.
This development adds to the ongoing dispute between FBN and GHL, an oil and gas company owned by media mogul Nduka Obaigbena. The disagreement centers on unpaid loans, including $225.8 million allegedly owed to FBN by GHL and its affiliates.
Background of the Dispute
The loan dispute has led to multiple court cases and arbitration proceedings. In an earlier ruling, the Federal High Court in Lagos issued a Mareva injunction freezing GHL’s accounts and assets. FBN alleges that GHL failed to meet its financial obligations, prompting the bank to take legal action.
However, GHL has denied the allegations, asserting that it is not indebted to FBN and has adhered to all legally binding agreements. Nduka Obaigbena, GHL’s principal, claims the company played a critical role in helping FBN resolve past financial challenges and contributed to crude oil discoveries in Nigeria.
The FPSO Tamara Tokoni is operated by Century Group Nigeria, an energy infrastructure provider managing multiple FPSO units in the country.
As the case continues, all eyes are on the February 10 hearing, where the legal dispute between FBN and GHL will take center stage once again.
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