Court Freezes Oil Firms’ Accounts Over Alleged Non-Disclosure of Lifted Crude

The Federal High Court, Lagos, has directed 18 commercial banks in Nigeria to freeze any sum standing to the credit of accounts belonging to three oil and gas firms.

The concerned firms – Petralon 54 Limited; Petralon Energy Limited and Tako E&P Solutions Limited – are 1st, 2nd and 4th defendants in suit FHC/L/CS/1686/22 filed by the plaintiff/applicant Eurafric Energy Limited.

The third defendant in the suit – Nigerian Upstream Regulatory Commission – is not affected by the order, according to a copy of the ruling obtained by The Nation.

Justice Daniel Osiagor made the order following the plaintiff’s claim that the three firms had yet to declare the total quantity of crude sold, the amount it was sold, the royalty paid to the government and the balance left.

Justice Osiagor also ordered the 18 banks to disclose on oath, details of the amounts standing as credit balance in the respective accounts of the firms’ accounts.

He directed the banks to file their affidavit of compliance within 14 days of receipt of the order.

Justice Osiagor further granted an interlocutory injunction restraining the trio from tampering with, withdrawing or dissipating the proceeds of the sale of the crude oil produced by the joint venture partners – Petralon Energy Limited and Tako E&P Solutions Limited – in the exploration operation at Dawes Island pursuant to the Oil Mining Licence awarded to the plaintiff by the Nigerian Upstream Regulatory Commission, the third defendant’s predecessor in title.

The court also ordered the three firms, their agents, directors, representatives and any person acting for or in trust for them, to disclose on oath the total quantity of crude sold, the amount for which it was sold, the royalty paid to government and the balance left.

Justice Osiagor made the orders, after hearing applicant’s counsel George Duru.

Further hearing of the suit resumes on October 14.