The Court of Appeal in Abuja on Wednesday granted a motion seeking to challenge a subsisting judgment regarding the 69.6% equity stake in the Ede Marginal Field, Oil Mining Lease (OML) 67, at the Supreme Court.
A three-judge panel of the Appeal Court, presided over by Justice J.O.K. Oyewole, referred the dispute to the Apex Court by granting “leave” to Gab & Nuella Concept Limited and Brinitup Hydrocarbons Limited to appeal against a Court of Appeal judgment, which had, on January 24, 2025, upheld the claim of NorthWest Petroleum & Gas Company Limited over the 69.6% equity stake in the Ede Marginal Field, OML 67.
Nairametrics previously reported that in a judgment delivered on Friday, January 24, 2025, the Appeal Court upheld the appeal filed by NorthWest Petroleum against Gab & Nuella Concept Limited and Brinitup Hydrocarbons Limited (the first and second respondents), as well as the Minister of Petroleum Resources.
The appeal arose from a ruling by the Federal High Court, Abuja Judicial Division, delivered on August 29, 2022, by Justice Emeka Nwite, which partly dismissed NorthWest Petroleum’s preliminary objection challenging the competence of the case against its equity stake in the Ede Marginal Field.
NorthWest Petroleum 69.6% Equity Stake Case
Nairametrics exclusively gathered and reported that the DPR awarded NorthWest Petroleum a 69.6% equity stake in the Ede Marginal Field, which included equity purportedly carved out from Gab and Brinitup’s allocation due to their failure to complete the required payments.
- Following the award, the DPR directed the awardees to form an incorporated Special Purpose Vehicle (SPV) based on their percentage equity allocation.
- However, Gab and Brinitup rejected the SPV arrangement, arguing that the directive was arbitrary and unlawful.
- Gab and Brinitup approached the Federal High Court, seeking several reliefs, including a declaration that the award of 69.6% of the Ede Marginal Field to NorthWest Petroleum contravened the provisions of the 2020 Marginal Fields Bid Round Guidelines and Sections 73 and 74 of the Petroleum Industry Act.
Upon receiving the respondents’ originating processes, NorthWest Petroleum’s legal team, led by Mark Mordi, SAN, filed a preliminary objection, arguing that the trial court lacked jurisdiction to entertain the suit.
- On August 29, 2022, the trial court ruled against NorthWest Petroleum’s objection but discharged one of the ex-parte orders that had restrained the formation of the SPV, stating that the SPV had already been incorporated at the time the suit was filed.
- Dissatisfied with the ruling, NorthWest Petroleum appealed to the Court of Appeal, submitting materials it had earlier presented at the trial court, including evidence of its participation in the 2020 bid round and proof of full payment of the signature bonus for its allocated equity stake.
In his ruling, Justice Okong Abang of the Appeal Court stated that NorthWest presented material evidence in its affidavit confirming its participation in the bid round and full payment of the signature bonus for its allocated 69.6% equity stake.
The Appeal Court subsequently declared the suit against NorthWest Petroleum “statute-barred” and struck it out for being incompetent.
What Transpired at the Appeal Court
At the resumed proceedings at the Appeal Court on Wednesday, Gab and Brinitup’s legal team urged the court to allow them to argue the judgment at the Supreme Court on the grounds of law and fact, citing its motion for leave.
- In an affidavit deposed by Akinola Samuel Oladimeji from the law firm of Olayinka Olajuwon & Co, seen by Nairametrics, it was submitted that the case of the applicants was struck out by the Appeal Court on the basis that they involved fresh issues not raised at the Federal High Court.
- He contended that his clients specifically raised and argued the points that their cause of action arose on March 17, 2022, and that their case at the Federal High Court concerned a contract.
He stated it is crucial for the Apex Court to review the issues and make a final pronouncement on the ownership of the disputed equity stake.
After hearing from the parties, Justice Oyewole granted leave to Gab and Brinitup to appeal to the Supreme Court for final redress.
More Insights
Given that oil and gas are Nigeria’s primary revenue sources, bid rounds for marginal oil fields often attract regulatory scrutiny and legal disputes.
- In April, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the launch of a new bid round for marginal oil fields in Nigeria in 2024, covering 12 oil fields and five fields from the postponed 2022 bid round.
- The NUPRC projected that the bid round could generate revenue in the billions of dollars, though the exact figure remained uncertain.
Due to regulatory requirements, the allocation of marginal fields frequently leads to litigation, mediation, and arbitration.
