Kaztec Engineering Challenges NNPC’s Ownership of OMLs in Supreme Court Appeal
Kaztec Engineering Limited, a leading indigenous oil and gas engineering company, has taken the contentious fight for control of several oil mining leases (OMLs) to the highest court in the land.
The company is pursuing a declaration that would grant them control of OMLs 123, 124, 126, and 137. Additionally, they aim to reverse the decision that allocated 51 percent equity participation in the OMLs to Mars Exploration & Production Company.
Previously, the lower court issued an interim directive for all parties involved in the lawsuit, including the minister of petroleum resources, to maintain the status quo regarding the OMLs. However, in December 2023, the court deemed the initial summons invalid due to the omission of Salvic Petroleum Resources Ltd as a necessary party.
In response, Kaztec Engineering has lodged an appeal with the supreme court, contesting the entire ruling. The company is basing their argument on sections 15 and 16 of the Court of Appeal Act, asserting that the trial court made an error in its decision.
Led by Jeph Njikonye, the legal team representing Kaztec Engineering is challenging the dismissal of their lawsuit due to the nonjoinder of Salvic Petroleum. The legal team has argued that the joint award of the OMLs was intended to be an equitable participation of Kaztec and that the exclusion of Salvic Petroleum should not have impacted the cause of action.
Furthermore, Njikonye has contended that the trial court erred in determining the claim based on the absence of proof of the payment of the signature bonus. He argued that the lower court acknowledged the credibility of the appellant’s cause of action against the respondents.
In light of the recent court decision, the appeal entered by Kaztec Engineering will halt any further action on the matter until the lawsuit is resolved.
This legal dispute highlights the complexities and rivalries within the Nigerian oil and gas industry, where control over lucrative OMLs can lead to intense legal battles. The outcome of this high-stakes dispute rests on the ruling of the supreme court.
We will continue to monitor this case and provide updates on any significant developments that arise.
