Court docket nullifies Shell, AFC, others’ ICC arbitration in Tempo Vitality go well with over OML 29

A Federal Capital Territory (FCT) Excessive Court docket in Abuja has nullified arbitration proceedings on the Worldwide Chamber of Commerce (ICC), London, instituted towards indigenous vitality firm, Aiteo Jap E&P Firm Restricted, by a gaggle of lenders who partly financed its acquisition of Oil Mining Lease (OML) 29.

The court docket declared the arbitration a violation of its subsisting injunctive orders.

Aiteo acquired OML 29 and the Nembe Creek Trunk Line (NCTL) from Shell in a landmark $3.01 billion transaction concluded in 2014. The deal was largely funded by billionaire founder Benedict Peters, who contributed roughly $1 billion of his private funds to shut the acquisition and restart manufacturing.

Justice S.B. Belgore gave the ruling on Tuesday, July 8, 2025, whereas delivering judgment in an software filed by Tempo Vitality Nigeria Ltd., a minority fairness contributor to the OML 29 deal.

In accordance with court docket paperwork, the claims originated from a multi-party financing association relationship again to 2014. Tempo Vitality alleged that a number of of the defendants breached their obligations beneath the governing facility agreements and, with out together with Tempo, initiated proceedings within the Excessive Court docket of England and Wales and commenced arbitration earlier than the ICC on December 11, 2020.

To guard its curiosity, Tempo filed a go well with on January 14, 2021, in search of injunctive aid to restrain the defendants from taking any additional steps within the UK proceedings and the ICC arbitration.

In a associated software, filed by Tempo via its counsel, Kehinde Ogunwumiju, SAN, the FCT Excessive Court docket granted interim injunctions on January 22, 2021, restraining the defendants from continuing with the arbitration and the English court docket case pending the willpower of the movement on discover. The court docket additionally consolidated pending functions and adjourned the matter.

The go well with, marked FCT/HC/CV/079/2021, listed Aiteo Jap E&P Firm Ltd, African Finance Company, Ecobank Nigeria Ltd, First Bank of Nigeria, Guaranty Trust Financial institution, Fidelity Bank, Shell Western Provide & Buying and selling, Shell Worldwide Buying and selling & Transport, Citibank Europe (UK Department), Citibank N.A. (London Department), FBN Trustees, Zenith Trustees, FBN Service provider Financial institution, Sterling Bank, Union Financial institution, Zenith Bank, and Dame Elizabeth Gloster as defendants.

Dissatisfied with the Excessive Court docket’s ruling, the defendants filed an attraction on the Court docket of Appeal, Abuja Division. Nonetheless, regardless of the subsisting interim injunctions issued by the Excessive Court docket, the defendants continued with the ICC arbitration proceedings in London from 2021 to 2024.

In a unanimous judgment delivered on April 25, 2025, the Court docket of Appeal affirmed the validity and subsistence of the January 2021 injunctions. The appellate court docket dismissed the attraction as an abuse of court docket course of, awarded N1.5 million in prices towards the defendants, and ordered an accelerated listening to of the pending functions on the Excessive Court docket. It additionally warned that any actions taken in defiance of legitimate court docket orders could also be declared void.

Following the appellate court docket’s judgment, on the resumed listening to earlier than the Excessive Court docket on Might 20–22, 2025, Tempo Vitality utilized for a restorative order to nullify the ICC arbitration. Ogunwumiju, SAN, argued that the arbitral proceedings had been performed in flagrant violation of the court docket’s orders.

Counsel to Ecobank Nigeria and different defendants, together with Mrs. Joke Aliyu and Mr. Babatunde Fagbohunlu, SAN, filed a preliminary objection difficult the jurisdiction of the court docket. They argued that the FCT Excessive Court docket lacked the competence to restrain overseas arbitral proceedings.

Justice Belgore dismissed the objection, describing it as incompetent and an abuse of court docket course of. He dominated in favour of Tempo Vitality and declared the ICC arbitration proceedings null and void, having been performed in violation of subsisting court docket orders.

The court docket reiterated that the interim orders of January 22, 2021, stay legitimate and binding on all events. It directed the defendants to desist from taking any additional steps in defiance of its orders and awarded a further N500,000 in prices to Tempo Vitality. The matter was adjourned to September 29, 2025, for listening to of the consolidated interlocutory functions.

Aiteo had earlier sued Shell Petroleum Improvement Firm of Nigeria, alleging fraud, deceit, and misrepresentation within the 2014 sale of its 30% stake in OML 29. In go well with quantity FHC/ABJ/C8/738/2021, filed earlier than a Federal Excessive Court docket in Abuja, Aiteo claimed Shell failed to completely disclose the precise situation of the oil wells and requested for $2.5 billion in compensation.

The corporate cited the poor situation of the asset and repeated assaults by oil thieves on its infrastructure as causes for its lack of ability to satisfy its monetary obligations to collectors.

In accordance with paperwork, the consortium of lenders dedicated roughly $2 billion in financing: Zenith Bank – $323 million, First Financial institution and GTBank – $200 million every, Fidelity Bank – $175 million, AFC – $125 million, Ecobank Nigeria and Union Financial institution – $100 million every, Sterling Bank – $60 million, and Shell Western – $512 million.

Peters’ complete fairness contribution included $898,237,697.35 in money and a further $257 million at closing to cowl charges, ancillary prices, and restart manufacturing. Tempo Vitality, amongst different small fairness holders, contributed $136 million.