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Court orders ministry, regulators to maintain status quo in oil fields dispute

The Federal High Court in Abuja has ordered the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and other defendants to maintain the status quo in a dispute over four oil fields pending the hearing and determination of the case.

Justice Emeka Nwite gave the order on Monday after counsel to the plaintiffs, Ambrose Unaeze, applied for an undertaking restraining the defendants from taking actions that could affect the subject matter of the suit.

The plaintiffs, Hi-Rev Oil Limited and Hi-Rev Exploration and Production Ltd, are challenging actions involving the oil fields; Yorla South (PPL 2A32 – OML 11) in Rivers State; Akiapiri (PPL 2A48 – OML 25) and Diebu Creek East (OML 32) in Bayelsa State; and Idiok (PPL 2A41 – OML 67) in Akwa Ibom State.

The companies are seeking an interim injunction to restrain the defendants from selling, assigning or allocating the oil fields, which they say were meant to replace the Utapate Oil Field and OPL 2002 earlier allocated to them but later withdrawn.

The defendants include the petroleum minister, the Attorney-General of the Federation, and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

Addressing the court, Unaeze said the firms had entered into a settlement agreement with the Federal Government for replacement of the withdrawn assets, which was accepted and adopted as a consent judgment.

He added that the companies had taken substantial steps and offered consideration for licences and a refinery project.

When the matter was called, Unaeze told the court that the first and third defendants had just served him with their memorandum of conditional appearance, counter-affidavit and preliminary objection, and requested time to respond.

He, however, urged the court to compel the defendants to give an undertaking pending determination of the suit.

“This is because of the nature of the case and the risk the res (subject matter) may face before the next adjourned date,” he said.

Counsel to the Attorney-General, Oyinlade Koleoso, said the office had filed a counter-affidavit and preliminary objection but had yet to serve them, adding that the AGF was not in a position to allocate oil blocks.

However, counsel to the NUPRC, J.A. Olugbade, opposed the application, while B.J. Tabaya, representing the minister, said he had no instruction to give the undertaking sought by the plaintiffs.

“But when a case is in court, what are you supposed to do?” the judge asked.

“Party will maintain status quo,” Tabaya responded.

“So go and tell your client that as far as this matter is before the court, parties should maintain status quo,” the judge said.

In his ruling, Justice Nwite granted the application and ordered all parties to maintain the status quo pending the hearing and determination of the suit.

The case was adjourned to January 26 for hearing.

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