The legal battle between Femi Otedola’s First Bank of Nigeria and Nduka Obaigbena’s General Hydrocarbons Limited has intensified with the arrest of a crude oil cargo belonging to the latter.
This follows the order of the Federal High Court in Port Harcourt the arrest and detention of crude oil cargo aboard the Floating Production Storage and Offloading (FPSO) Vessel Tamara Tokoni.
Justice E.A. Obile issued the ruling on January 9, directing personnel of the Nigerian Navy, along with other regulatory and maritime bodies, to ensure the cargo is detained until General Hydrocarbons provides a “satisfactory guarantee” from a first-class Nigerian bank of $19.7 million, plus interest and costs.
Following the court’s directive, the Nigerian Navy has detained the cargo, PREMIUM TIMES reported early Wednesday. The order also mandates regular surveillance around the vessel to prevent any unauthorised actions.
The FPSO Tamara Tokoni, owned by General Hydrocarbons Limited, is at the centre of the conflict between the oil servicing company, led by Mr Obaigbena, who is also Chairman of THISDAY and ARISE Media Group and First Bank, led by Mr Otedola.
The dispute stems from credit facilities extended by First Bank to General Hydrocarbons for oil exploration and production activities. The bank claims the company defaulted on several repayment deadlines, leading to a debt of $225.8 million as of September 30, 2024.
General Hydrocarbons, however, alleges that First Bank breached the terms of the loan agreement by delaying disbursements critical to its operations on Oil Mining Lease (OML) 120.
While First Bank secured a Federal High Court order in Lagos on December 30, 2024 to freeze the assets of Obaigbena and his family members who serve as directors in General Hydrocarbons, the oil company obtained a separate injunction on December 12. The earlier injunction prohibited First Bank from obstructing General Hydrocarbons’ access to funding or enforcing any security tied to the loan agreement.
General Hydrocarbons, through its solicitors Abiodun Layonu & Co., has described First Bank’s actions as an “abuse of court process” and accused the bank of ignoring the earlier ruling.
First Bank has refuted the allegations, maintaining that its actions are within the bounds of the law and do not violate any court orders. The bank stated that its asset-freezing measures are aimed at recovering the significant debt owed by General Hydrocarbons.
The Federal High Court in Port Harcourt has adjourned the matter to February 9, 2025, for the continuation of the substantive suit.
