OML 42:  Court Extends Restraining Order against NNPC Exploration MD, Others

Wale Igbintade

Justice Daniel Osiagor of the Federal High Court in Lagos, yesterday extended till May 8, the earlier ex-parte order retraining the Managing Director, NNPC Exploration and Production Limited, Ali Muhammed Zarah, from changing, altering or replacing the crude oil evacuation arrangement in place for OML 42 through pipelines from the asset to Keremor Manifold and vessel barging operation to Ugocha export Terminal.

The court also restrained him or his agents from diverting or re-channeling the crude oil to Trans Forcados Fxport Terminal through the Trans Forcados pipelines or any other means pending the hearing and determination of the Motion on Notice for interlocutory injunction filed in suit number no: FHCL/CS/550 2023.

Justice Osiagor had on March 29, 2023, granted interim preservatory Orders against the Defendant/Respondent including its officers, employees, servants, members, agents, assigns, privies, affiliates or any their person(s) howsoever described pending the determination of the pending motion on notice for interlocutory injunction filed in the suit.

However, when the matter came up yesterday, Plaintiffs’ counsel, Mr. Uche Valentine Obi, informed the court that the Interim Order of the court made on March 29, 2023, was not obeyed by the defendants.

He urged the court to hear Plaintiffs’ application for contempt proceeding filed against the Managing Director NNPC Exploration and Production Limited, Ali Muhammed Zarah, and others alleged contemnors.

But, Counsel to the defendants, Mr. Kehinde Ogunmuiju SAN, argued that that court lacked jurisdiction to extend the life span of the ex-parte order, and that the Defendants have challenged the order of court at the Court of Appeal Lagos Division.

He submitted that the application challenging court’s jurisdiction should take pre-eminence over and above the application for contempt proceeding.

Both counsel to the plaintiffs and the defendants cited plethora of legal authorities to support their position on which of the two applications should take priority.

In his Ruling, Justice Osiagor held that the initial ex-parte order was meant to preserve the Res (subject matter), and made in the interest of justice, but the order has not been obeyed.

“The order of the court, which is yet to be complied with, was made in the interest of Justice. The court cannot walk away leaving a vacuum because there is a pending motion challenging the jurisdiction of the court,” the court stated.

Consequently, Justice Osiagor extended the lifespan of the ex-parte order till May 8, 2023, and for hearing of all pending applications.

The Plaintiffs, Neconde Energy Limited, and Jones Creek Hydrocarbon had in  affidavit deposed to by one Olukayode Shobowale, a  Litigation Executive in Alliance Law Firm, Solicitors, stated that  on March 29, 2023, the court granted interim preservatory orders as stated above against the Defendant/Respondent including its officers, employees, servants, members, agents, assigns, privies, affiliates or any their person(s) howsoever described pending the determination of the pending motion on notice for interlocutory injunction filed in the suit.

He stated that, “On March 30, 2023, at about 2.15pm, the certified true copies of the enrolled Orders of the court together with the Plaintiffs/Applicants’ Motion on Notice for Interlocutory injunction, writ of Summons, Statement of Claim and other originating processes in the suit were served by the bailiff of the court, on the defendants through its branch office located at 9th Floor, Foreshore Towers, Ikoyi, Lagos.

“As additional precaution and warning against violation of the court orders, the Plaintiffs’ counsel Mr. Uche Valentine Obi SAN, forwarded the aforesaid court order with the endorsed receipt stamp of the Defendant / Respondent under a covering letter dated 30″ March 2023 to the official email addresses of the 1st, 2nd, and 3rd Contemnors / Respondents amongst other persons.

“In the said letters, strict waning of the legal consequences of flouting, disobeying and undermining the court orders were explained with a call for respect and obedience to the court orders.

“However, despite the aforesaid service of the aforesaid orders, at about 2.15pm on March 30, 2023, the 1st Defendant acting through the 1st – 3rd Defendants had convened a meeting at about 5pm on that same date presided over by the 2nd and 3rd Contemnor which was attended by its staff and workers of OML 42 concession and announced that the planned and threatened switch and diversion of OML 42 crude oil to Trans-Forcados.

“In defiance of orders of this court, the Contemnors instructed its personnel, workmen drawn largely from the contractor, Pipeline Infrastructure Nigeria Limited, to continue with the injuncted works at the Keremor manifold with a view to concluding it expeditiously and achieved its planned switch and diversion of OML 42 Crude oil over the weekend so that it could claim that the injuncted acts had been already concluded and thus undermine the orders and foist a faith accompli on the Court and render its orders impotent and academic.”

It added: “Consequently, the injuncted and forbidden works had resumed at Keremor Manifold by the Defendant’s workmen and personnel in morning of Saturday 1, April 2023 through Sunday 2 April 2023 intensively under the directives of the Ist to 3rd Contemnors.

“When they drew the attention of the workmen and Defendant’s personnel to the subsisting Court orders they had explained that the 1st -3rd Defendants had directed resumption of works with an assurance that the Court orders must be vacated by their lawyers within a couple of days possibly before the return date of 21st  April 2023 fixed by the court for further proceedings and that they had to continue with their work in the circumstances as there was a subtle threat to withhold their payments if they had stopped work in obedience to court order.”