Court Reaffirms Order Restraining SPDC From Terminating Contract Awarded To Indigenous Contractors

A Rivers State High Court sitting in Port Harcourt, on Thursday, has reaffirmed the order restraining Shell Petroleum Development Company (SPDC) from terminating the GSA Logistics Services Contracts handled by indigenous contractors from oil host communities in the region.

According to the Court presided over by Justice I.P.C. Igwe, the SPDC is restrained from stopping, truncating or calling off the bidding process of contract number CW502377 already bidded for by indigenous Niger Delta companies, which are for the position of logistic support services for Government Security Agencies in their facilities in the region.

The claimants, in the suit numbered PHC/3578/CS/2022 and filed by Alabo Datelima Membere and Godknows Ologbolo on behalf of the Niger Delta Youths for Transparent and Accountability Watch Dog, had approached the court seeking an interim injunction restraining the SPDC against termination of the GSA Logistics Services Contract.

The Nigerian National Petroleum Corporation Limited, NNPC Upstream Investment Services (formerly known as National Petroleum Investment Services), Nigerian Upstream Regulatory Commission and the Shell Petroleum Development Company of Nigeria Limited are listed as respondents/defendants.

The order was first issued on November 10, 2022, and was reaffirmed on Thursday, April 20, 2023, based on the application of the claimant’s counsel.

Justice Igwe, after hearing and determination on the motion on notice for an interlocutory injunction from the claimants’ Counsel, Tonye Wilson Esq, also ordered that an order of interim injunction be issued restraining the 4th defendants, Shell Petroleum Development Company (SPDC) or it’s privies, servants or agents from truncating the ongoing provision of logistic support services for government security agencies in facilities belonging to the 4th defendants pending the hearing and determination of the motion on notice for interlocutory Injunction.

“That the claimant shall enter into an understanding in damages to be paid in favour of the defendants in the sun of Five million naira (N5,000,000) only should the motion on notice and substantive case be found to be frivolous,” he said.

The Court, however, adjourned the substantive case to June 20, 2023.

It would be recalled that indigenous contractors handling the GSA Logistics Services Contract are locked in battle with the SPDC over the supply of patrol speedboats and other logistics materials for use by security personnel to protect oil facilities in and around oil host communities.

According to the aggrieved contractors, despite the commendable handling of the GSA contract over the years and benefits to oil host communities through their indigenous contractors, the SPDC is taking the said GSA contract away from the oil host communities in connivance with NIPEX to re-award the contract to non-indigenous contractors, who do not know anything about the terrain of the Niger Delta

They also alleged that some staff in the security department of SPDC, particularly Ben Greensmith, Diki Omuku, Agnes Odimarha and their cohorts in NIPEX are fronting their kinsmen and surrogates to take over the said GSA contracts from the indigenous contractors.