Federal Government and NNPCL Triumph in Legal Battle over Former ADDAX Oil Mining Leases

The Federal Government and the Nigerian National Petroleum Company Ltd (NNPCL) have achieved success in a legal dispute regarding oil mining leases previously under the jurisdiction of ADDAX. A ruling was delivered by the Federal High Court in Abuja, Judge Justice N.E. Maha, which dismissed a suit brought by Kaztec Engineering Ltd on the grounds of incompetence.

The Court ruled in favour of the Federal Government and NNPCL by dismissing the suit filed by Kaztec Engineering Ltd, which contested NNPC’s statutory concession for OMLs 123, 124, 126, and 137.

Kaztec Ltd initiated legal action against the Federal Ministry of Petroleum Resources, the Nigerian National Petroleum Company Ltd, and others, seeking a declaration that the review of the award of OMLs 123, 124, 126, and 137, awarded to NNPCL as far back as 2002, was unjust. However, the court deemed the plaintiff’s suit to lack merit due to a failure to fulfil the essential requirement of paying the signature bonus.

In the judgment, the court emphasised that the failure to pay the signature bonus, which is a condition precedent to the award of OMLs 123, 124, 126, and 137, rendered Kaztec’s suit legally baseless. Additionally, it was noted that the plaintiff also failed to include necessary parties in the suit, leading to the conclusion that Kaztec Engineering Ltd’s legal action amounted to an abuse of court process.

Justice Maha unambiguously struck out Kaztec’s suit for being incompetent, much to the satisfaction of the Federal Government and NNPCL. Prior to the ruling, counsel to the NNPCL, Mr Kehinde Ogunwumiju (SAN) from Afe Babalola and Co., and other defendants had challenged the jurisdiction of the court to entertain the suit. The defendants contended that the suit lacked a cause of action as Kaztec, rumoured to be owned by Sir Emeka Offor, did not pay the required signature bonuses for the OMLs.

This legal victory for the Federal Government and NNPCL marks an important development in the oil and gas sector. It demonstrates the commitment to upholding legal procedures and regulations within the industry.

The judgment represents a significant win for the Federal Government and NNPCL, reinforcing the importance of adhering to legal prerequisites in the allocation and operation of oil mining leases.

Source:
Nigerian Tribune