Court Strikes Out Lawsuit on OMLS 123, 124, 126, 137

*Assets formally returned to NNPCL

Peter Uzoho

The Federal High Court (Abuja Division), yesterday, struck out the lawsuit concerning OMLs 123, 124, 126 and 137.
The suit with number: FHC/ABJ/CS/1291/2020, was brought by Kaztec Engineering Limited against the Ministry of Petroleum Resources; the Attorney General of the Federation; Mars Exploration and Production Company Ltd; the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Petroleum Company Limited (NNPCL).

The plaintiff had sought, amongst other things, a Declaration that OMLs 123, 124, 126 & 137 be awarded to them and an order setting aside the award of 51 per cent equity participation in the said OMLs to Mars E & P.
On 28th October 2021, Justice N.E Maha, had issued an interim order directing the parties to the suit (including the Minister of Petroleum Resources and the NUPRC) to maintain the status quo in relation to the said OMLs.

However, in the judgment of the court delivered yesterday, the court held that the Originating Summons was incompetent, having failed to join a necessary party (Salvic Petroleum) to the suit. Consequently, the suit was struck out.

In effect, with the striking out of the suit, the order of injunction earlier made in the suit becomes extinguished.
It is useful to note that since all of Kaztec Engineering Ltd, Mars Exploration and Production Company Ltd, and Slavic Petroleum Resources Limited, did not pay the signature bonuses for the award within the timelines prescribed for it in their respective letters or award, the award had lapsed and the awardees no longer had any interest in the assets.

Accordingly, OMLs 123,134,126 and 137 has formally reverted to NNPC Limited and the national oil company has all the rights of concessionaire in the asset, subject to such requirements as the Commission may impose in accordance with extant laws.
The judgement, it was gathered, was a win for the Nigerian upstream sector and the Nigerian economy as a whole as it has freed a natural resource for utilisation without any legal encumbrances.