FBN secures courtroom order to grab Common Hydrocarbons Ltd’s cargo

First Bank of Nigeria Plc has secured the order of a Federal Excessive Courtroom sitting in Port Harcourt, Rivers State, to arrest a cargo belonging to Common Hydrocarbons Restricted.

The courtroom, in Go well with quantity: FHC/PH/CS/02/2025, ordered that the complete cargo of crude oil on board the Floating Manufacturing Storage and Offloading Vessel Tamara Tokoni, presently situated at Rivers State, be arrested pending the availability of a passable assure from a first-class Nigerian financial institution within the sum of $19,752,304.84.

FBN had dragged Common Hydrocarbons Ltd., the cargo of crude oil on board FPSO Tamara Tokoni, and the house owners/operators of FPSO Tamara Tokoni.

The financial institution filed a movement ex parte dated January 6, 2025, and filed on January 9, 2025, earlier than the courtroom.

The plaintiff prayed for the next orders: “An order arresting and/or attaching and/or liening the complete cargo of crude oil on board the Floating Manufacturing Storage and Offloading Vessel Tamara Tokoni presently situated at Rivers State or wherever she could also be discovered inside the jurisdiction of this Honourable Courtroom pending the availability of a passable assure from a first-class Nigerian financial institution within the sum of $19,752,304.84 plus curiosity and prices by the mentioned defendants to safe the plaintiff’s declare herein, or till this Honourable Courtroom in any other case orders.

“An order directing officers of the Nigerian Navy, NUPRC, NIMASA, and Harbour Grasp of the Nigeria Ports Authority to render mandatory help to the Admiralty Marshall of this Honourable Courtroom in giving impact to the order of arrest of the 2nd Defendant so as to safe identical and likewise take different steps, together with the availability of standard patrols and surveillance round her to forestall the first defendant from dissipation till the order of this courtroom has been complied with in respect of the arrest of the 2nd defendant.”

Upon studying the affidavit in assist deposed to by Mr. Temitayo Osundosumu, after listening to the counsel for the plaintiff, E. C. Unachukwu, the courtroom thought-about the applying and granted the identical on January 9, 2025.

In his ruling, Justice E. A. Obile mentioned, “It’s hereby ordered as follows:

“That order is granted arresting and/or attaching and/or liening the complete cargo of crude oil on board the Floating Manufacturing Storage and Offloading Vessel Tamara Tokoni presently situated at Rivers State or wherever she could also be discovered inside the jurisdiction of this Honourable Courtroom pending the availability of a passable assure from a first-class Nigerian financial institution within the sum of $19,752,304.84 plus curiosity and prices by the mentioned Defendants to safe the Plaintiff’s declare herein, or till this Honourable Courtroom in any other case orders.

“That order is made directing officers of the Nigerian Navy, NUPRC, NIMASA, and Harbour Grasp of the Nigeria Ports Authority to render mandatory help to the Admiralty Marshall of this Honourable Courtroom in giving impact to the order of arrest of the 2nd Defendant so as to safe identical and likewise take different steps, together with the availability of standard patrols and surveillance round her to forestall the first Defendant from dissipation till the order of this courtroom has been complied with in respect of the arrest of the 2nd Defendant.”

Following the order, the courtroom issued a warrant for the arrest and detention of the cargo.

On January 10, the courtroom issued a discover of arrest, saying, “The above-named cargo being in custody or possession of the Admiralty Marshall by advantage of a warrant from the Federal Excessive Courtroom, Port Harcourt, all individuals are hereby cautioned to not try to take away the identical or intervene therewith with out the authority in writing of the mentioned Marshall or his substitutes; in any other case they are going to be instantly proceeded in opposition to.”

The case has since been adjourned to February 10, 2024.

In the meantime, First Financial institution spoke on its ongoing dispute with Common Hydrocarbons Restricted, emphasising the necessity for good governance and transparency in a industrial transaction that has turn into the topic of litigation.

The financial institution issued an in depth public assertion to make clear the matter and refute what it described as “sponsored however false narratives” in sure media reviews.

FBN disclosed that the controversy centred round credit score services prolonged to GHL for the event of oil mining lease belongings. These loans, the financial institution defined, have been ruled by strong agreements that clearly outlined the obligations of each events, in addition to safety preparations to safeguard the transaction.

Regardless of FBN fulfilling its obligations underneath the agreements, the financial institution alleged that GHL violated key phrases, together with the diversion of proceeds from the financed undertaking.

“On the root of the current dispute is First Financial institution’s demand for good governance and transparency within the transaction, which GHL rejected,” the financial institution acknowledged.

FBN had proposed appointing an impartial operator, mutually acceptable to each events, to handle the financed belongings transparently. The purpose was to reinforce visibility, defend all stakeholders, and guarantee worth creation.

Nonetheless, GHL declined the proposal and as an alternative demanded extra funding, which the financial institution says was unjustifiable given the circumstances.

GHL’s refusal to execute the phrases required for added funding prompted the corporate to provoke arbitration proceedings and strategy the Federal Excessive Courtroom for preservative orders.