16th January 2025, NewsOrient, News, Business And Economy

The Federal High Court sitting in Port Harcourt has granted First Bank’s request to arrest and detain the crude oil cargo on board the Floating Production Storage and Offloading (FPSO) vessel, Tamara Tokoni, belonging to General Hydrocarbons Limited (GHL) owned by Nduka Obaigbena.

Justice E. A. Obile’s order was based on an application by First Bank following its dispute with GHL for “its failure to meet obligations” in the contentious $225 million loan transaction.

The defendants are GHL, the cargo of crude oil on board FPSO Tamara Tokoni, its owners/operators, and the master of the vessel.

Reports say GHL is an oil exploration firm owned by Prince Nduka Obaigbena, the Publisher of ThisDay newspapers and Chairman of Arise Television while Femi Otedola, a well known billionaire, is the Chairman of First Bank. Of recent, Otedola and Obaigbena, said to be close friends and associates, have featured in the media levelling damaging allegations and counter allegations against one another following their disagreements over the loan.

It has also been reported that “FirstBank had earlier obtained a Mareva injunction from the Federal High Court in Lagos restraining all banks in Nigeria from releasing funds to GHL and its directors – Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena.”

Earlier reports on the order dated January 9, quoted the court ordering this: “That order is granted arresting and/or attaching and/or liening the entire cargo of crude oil on board the Floating Production Storage and Offloading (FSPO) vessel Tamara Tokoni presently located at Rivers State or wherever she may be found within the jurisdiction of this Honourable Court pending the provision of a satisfactory guarantee from a first class Nigerian bank in the sum of $19,752,304.84 plus interest and costs by the said defendants to secure the plaintiff’s claim herein, until this Honourable Court otherwise orders.”

The Judge said: “That order is made directing officers of the Nigerian Navy, NUPRC, NIMASA, Harbour Master of the Nigeria Ports Authority to render necessary assistance to the Admiralty Marshall of this Honourable Court in giving effect to the order of arrest of the second defendant (crude cargo) in order to secure same and also take other steps including the provision of regular patrols and surveillance around her to prevent the first defendant (General Hydrocarbons) from dissipation until the order of this court has been complied with in respect of the arrest of the second defendant.”

Meanwhile, the court’s Deputy Chief Registrar, Naanlang Dashe, has issued a notice of arrest in compliance with the court’s order.

The notice reads: “The above-named cargo, being in custody or possession of the Admiralty Marshall by virtue of a warrant from the Federal High Court, Port Harcourt, all persons are hereby cautioned not to attempt to remove same or interfere therewith without the authority in writing of the said Marshall or his substitutes, otherwise they will be immediately proceeded against,” the notice said.

The warrant of arrest and detention states that the cargo of crude oil “currently located at Rivers State or any port within Nigeria territorial waters is about to leave Nigeria outside the jurisdiction of the court.

“This is, therefore, to require and order you forthwith to arrest and detain the said cargo of crude oil on board the FPSO Vessel Tamara Tokoni and keep same under detention until you shall receive further orders from the court.”

According to First Bank in the court papers, “it extended several credit facilities to GHL for the development of some oil mining lease assets and it diligently performed its obligations under the loan agreements but GHL breached them and diverted proceeds.”

In it’s defence, GHL denied owing First Bank and accused it of abusing the court process.

According to GHL, it “signed the agreement believing and trusting that First Bank would comply with its obligations to fund OML 120, but it has clearly not done so.”

Recall that People’s Gazette had in an earlier publication reported that: “The contract deal which began in 2021 was for First Bank to provide funds for GHL’s oil exploration activities to develop OML 120 and take 50 per cent profit for eight years.

“The bank was accusing GHL of diversion of funds that the money released was not used for intended and agreed purpose.

“But in 2023, GHL said First Bank did not fulfill its part of the deal for funding despite meeting stipulated requirements. A payment that should have been made within five days of document submission extended into 70 days and beyond, leaving innocent rig workers to suffer, according to GHL’s rebuttal.

“The Bank shall, where GHL has satisfied all conditions precedent to disbursement under the Facility Agreement, disburse all of or part of the Facility Amount to GHL not later than 5 (five) business days after GHL makes a utilisation request in accordance with the terms of the Facility Agreement,” GHL quoted the contract deal signed by both parties as saying.

“First Bank’s alleged failure to make payment for months caused the Blackford Dolphin oil rig workers to run out of necessary supplies, including food and water, in a critical situation that left 93 persons fighting for their lives.

“This failure to pay GHL pending request as per above terms led to an international incident on October 7, 2023, when the drilling rig, Blackford Dolphin, ran out of fuel, food, water and other critical supplies with 93 souls on board, and the Rig was on the verge of declaring MAYDAY, GHL wrote.”

The Federal High Court adjourned the substantive suit to February 10 2025 for mention.

Photo Credit/Source: People’s Gazette, TheNiche Newspaper

~ NewsOrient

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