First Bank Obtains Court Order to Seize Crude Cargo on FPSO Linked to GHL

The Federal High Court’s Port Harcourt Judicial Division has ordered the arrest of the entire cargo on board the General Hydrocarbons Limited (GHL)- affiliated Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni, situated in Rivers State.

On January 9, 2025, First Bank of Nigeria Limited (FBN) filed an ex parte motion, in which Justice E.A. Obile rendered the decision, as seen by THE NEWS CHRONICLES.

Before GHL and anyone can tamper with or transact the crude oil products onboard the vessel, FBN is demanding a bank guarantee of $19,752,304.84 and the payment of fees.

The purpose of the application is to protect FBN’s financial claim against GHL, the crude oil cargo on board FPSO Tamara Tokoni, and the ship’s owners, operators, and master, who are named as the first through fourth defendants in the petition that Nairametrics was able to get.

A bank guarantee is a commitment made by a bank to cover a company’s liabilities in the event that it breaches its contractual duties.

FBN’s Situation

• According to an affidavit deposed by Temitayo Osundosumu, an employee of FBN, a bank guarantee provided by GHL and others is essential to protecting FBN’s financial investments in GHL and obligations purportedly owing to the financial institution by the oil and gas business.   

E.C. Unachukwu Esq., the applicant’s attorney, also pleaded with the court to stop GHL from wasting or diverting products made from crude oil.

He prayed for the following instructions:  

“An order arresting or attaching the entire cargo of crude oil onboard the Floating Production Storage and Offloading (FPSO) Vessel Tamara Tokoni, presently located in Rivers State or wherever it 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 defendants to secure the plaintiff’s claim herein, or until this Honourable Court otherwise orders.   

“An order 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 the Cargo of Crude Oil on Board FPSO Tamara Tokoni in order to secure same and also take other steps including the provision of regular patrols and surveillance around her to prevent the GHL from dissipation until the Order of this Court have been compiled with in respect of the arrest of the 2nd defendant.” 

• The enrolled order states that on January 9, 2025, the court considered the application and approved FBN’s request.
• According to Nairametrics, the case has been postponed until February 10, 2025.
• The court has warned all parties not to remove or tamper with the crude oil without permission.
• The cargo, as mentioned earlier, is on board the FPSO vessel, and law enforcement officers have been instructed to hold it there until further directives are given.   

What To Note

The legal dispute between FBN and GHL, an oil and gas corporation owned by media tycoon Nduka Obaigbena, is intensified by this development.

Regarding the development of Oil Mining Lease (OML) 120, accusations and rebuttals have surfaced recently.

• GHL and FBN’s debt issue has intensified into numerous court cases and arbitration actions, some of which are still seeking resolution.
• According to earlier reports from Nairametrics, the Federal High Court in Lagos issued several judgements, including a Mareva injunction, to freeze accounts and assets connected to GHL, its affiliates, and well-known people like Nduka Obaigbena.   
• The court’s ruling comes after claims that FBN is due $225.8 million in unpaid loans.
• Obaigbena asserts, however, that GHL willingly saved FBN from bankruptcy in the past, highlighting how their cooperation assisted in resolving FBN’s financial issues and helped uncover crude oil in Nigeria.
• GHL has argued that it has acted within the parameters of legally binding agreements and has no debt to FBN.

Century Group Nigeria, a Nigerian energy infrastructure firm, owns and runs a number of floating production, storage, and offloading (FPSO) units, including the FPSO Tamara Tokoni.