Supreme Court voids First Bank’s FPSO crude arrest, orders handover to GHL

The Supreme Court on Friday reversed the arrest of General Hydrocarbons Limited (GHL)-linked crude oil aboard the FPSO Tamara Tokoni in a case previously commenced by First Bank of Nigeria (FBN).

In a unanimous judgment, the Supreme Court ordered the Chief Registrar of the Court of Appeal and the Admiralty Marshal to immediately hand over the assets to GHL, ThisDay reports.

Nairametrics previously reported in 2025 that the Federal High Court, Port Harcourt Judicial Division, presided over by Justice E.A. Obile, ruled in favour of FBN and ordered the arrest of the entire cargo onboard the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni, located in Rivers State and linked to GHL.

What the Supreme Court is saying

As reported by ThisDay, the apex court described the suit instituted by First Bank of Nigeria (FBN) as contractual in nature and not an admiralty matter.

The apex court ruled that both the Federal High Court and the Court of Appeal lacked the jurisdiction to entertain the case instituted by the bank.

Describing the lower courts’ judgments as “perverse,” the Supreme Court allowed the appeal filed by GHL and quashed the judgment of the Court of Appeal.

Backstory

In 2025, FBN insisted on a $19,752,304.84 bank guarantee and the payment of costs by GHL and others before they could tamper with or transact in the crude oil cargo onboard the vessel.

The application aimed to secure FBN’s financial claims against GHL, the cargo of crude oil onboard the FPSO Tamara Tokoni, as well as the owners, operators, and master of the vessel, who were listed as the first to fourth defendants in the motion.

According to the enrolled order, the trial court considered the application and granted FBN’s request on January 9, 2025, paving the way for further legal disputes.

What you should know

The apex court’s reported decision has brought the legal battle between FBN and GHL, an oil and gas company owned by media mogul Nduka Obaigbena, to a close.

• The apex court’s decision favours GHL.
• Over the past year, there have been allegations and counter-allegations regarding the development of Oil Mining Lease (OML) 120.
• The loan dispute between GHL and FBN had escalated into multiple court cases and arbitration proceedings.
• Nairametrics previously reported that the Federal High Court in Lagos issued several orders, including a Mareva injunction, freezing assets and accounts linked to GHL, its affiliates, and prominent individuals, including Nduka Obaigbena.
• The court’s decision followed allegations of unpaid loans amounting to $225.8 million owed to FBN.

However, Obaigbena claims that GHL voluntarily rescued FBN from collapse in the past, emphasizing that their collaboration helped resolve FBN’s financial challenges while contributing to the discovery of crude oil in Nigeria.

GHL has maintained that it is not indebted to FBN and has asserted that it has acted within the confines of legally binding agreements.