A crude oil shipment belonging to a General Hydrocarbons Limited (GHL) has been seized following a legal battle with First Bank of Nigeria (FBN). The Federal High Court in Port Harcourt issued an order allowing the arrest and detention of the cargo, currently on board the FPSO (Floating Production Storage and Offloading) vessel, Tamara Tokoni.
FBN filed the request to seize the cargo, accusing GHL of failing to honour a loan agreement for developing an oil mining lease (OML 120) in the Niger Delta. The court directed officers from the navy, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigerian Ports Authority (NPA) to assist in the seizure.
The Admiralty Marshall of the court has now taken custody of the crude oil. A public notice warns against unauthorised interference with the cargo, stating that violators will face legal consequences.
The Loan Agreement and Dispute
FBN and GHL signed a deal in May 2021 where the bank provided funds for oil exploration. Under the agreement, profits from the project were to be shared equally. However, FBN claims GHL diverted earnings after selling crude from the FPSO vessel.
In response, GHL denied the allegations, calling them misleading and stating that it does not owe FBN $225 million as claimed.
This disagreement has escalated tensions between the two companies, with both issuing public statements defending their positions.
Impact of the Seizure
The case highlights the financial complexities of Nigeria’s oil sector and the disputes that can arise over revenue sharing. As the legal battle continues, industry stakeholders will closely monitor its outcome for its potential effects on oil operations and financial partnerships in the region.