PPL 213: Court Voids Award of 45% Participating Interest to Petrodos

Wale Igbintade

Justice Isa Dashen of the Federal High Court in Bayelsa State has set aside the 45 per cent participating interest in Petroleum Prospecting License (PPL) 213, Ogbanabou Field,  awarded  by the  Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to Petrodos Atlantic Energy Limited.

The court in its judgement delivered in suit number FHC/YNG/CS/157/2024 instituted by a private limited liability company, Kalm Marine & Petroleum Services, declared the letter with Reference No: NUPRC/LD/2531/2024/ 47 dated April 4, 2024 invalid, null and void.

The court held that the letter was issued in a manner inconsistent with the plaintiff’s right to fair hearing and right to own property as provided for in Sections 36(2) and 44 of the Constitution of the Federal Republic of Nigeria 1999 (as altered).

The defendants in the suit were the NUPRC and Petrodos Atlantic Energy Limited.

Among others, the plaintiff had in its Originating Summons, filed by its lawyer, G.E Ikpuri, prayed the court to determine whether the letter was not in breach of the plaintiff’s fair hearing and right to property.

However, the defendants in their response challenged the jurisdiction of the court to entertain the suit,  contending that the procedures for instituting action of this nature were not followed.

The defendants argued that the plaintiff having failed to commence the action by the proper procedure, the court lacked jurisdiction to entertain the suit as  presently constituted and ought to be struck out.

Resolving the issues, Justice Dashen held that the 1st defendant, NUPRC’s contentions that the suit ought to have been commenced by way of judicial review was grossly misconceived and therefore discountenanced.

The court held: “Having carefully reviewed the processes filed and also the written and oral submissions of counsel on this notice of preliminary objection of the 2nd defendant/objector, I am therefore in full agreement with the learned counsel for the plaintiff/respondent that this suit is properly commenced.

“I do not agree with the contention of the senior counsel that this suit was not commenced by proper procedure which ought to be by application for judicial review in particular by way of writ of mandamus,” the judge said.

On the substantive suit, the court held that it was indisputable that the 1st defendant’s unilateral assignment of 45 per cent of the plaintiff interest in  PPL 213 to the 2nd defendant without hearing the plaintiff ought to be set aside by the court.

Justice Dashen held: “There must be compliance with the doctrine of fair hearing. If fair hearing is not accorded to the affected party, such action, decision among or step is liable to be set aside.”

Consequently, the court directed the NUPRC  to rectify its Register of Ownership of Participating Interests in PPL-213 to reflect the 100 per cent ownership interest of  Kalm Marine and Petroleum Services over PPL 213.

The court held: “In the light of the foregoing, I hold that the sole issue should be and is hereby resolved in favour of the plaintiff and against the 1st and 2nd defendants.”