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First Bank Secures Court Order to Arrest General Hydrocarbons’ Crude Oil Cargo

Published

6 hours ago

Jan 16, 2025.

First Bank secures court order to arrest crude oil cargo over $19.75M dispute.
Court ruling follows FBN’s demand for a guarantee from General Hydrocarbons Ltd.
FBN refutes media reports, calls for transparency in the transaction.

First Bank of Nigeria Plc has secured a Federal High Court order in Port Harcourt, Rivers State, to arrest cargo belonging to General Hydrocarbons Limited.

EKO HOT BLOG reports that the court, in Suit Number: FHC/PH/CS/02/2025, ordered the arrest of the entire cargo of crude oil on board the Floating Production Storage and Offloading Vessel (FPSO) Tamara Tokoni, currently located in Rivers State. The arrest is pending the provision of a satisfactory guarantee from a first-class Nigerian bank in the sum of $19,752,304.84.

FBN had filed the case against General Hydrocarbons Ltd., the cargo of crude oil on board the FPSO Tamara Tokoni, and the owners/operators of the vessel. The bank filed a motion ex parte dated January 6, 2025, and filed on January 9, 2025.

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The plaintiff sought the following orders: “An order arresting and/or attaching and/or liening the entire cargo of crude oil on board the FPSO Tamara Tokoni, currently located in Rivers State, or wherever it may be found within the jurisdiction of this Honourable Court, pending the provision of a satisfactory guarantee from a first-class Nigerian bank in the sum of $19,752,304.84 plus interest and costs by the said defendants to secure the plaintiff’s claim, or until this Honourable Court orders otherwise.”

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“An order directing officers of the Nigerian Navy, NUPRC, NIMASA, and the Harbour Master of the Nigeria Ports Authority to assist the Admiralty Marshall of this Honourable Court in enforcing the order of arrest of the 2nd Defendant to secure the cargo and provide regular patrols and surveillance to prevent the dissipation of the cargo until the court order is complied with.”

After reviewing the affidavit in support, deposed by Mr. Temitayo Osundosumu, and hearing from the plaintiff’s counsel, E. C. Unachukwu, the court granted the application on January 9, 2025.

Justice E. A. Obile issued the following ruling:
“The order is granted arresting and/or attaching and/or liening the entire cargo of crude oil on board the FPSO Tamara Tokoni, currently located in Rivers State, pending the provision of a satisfactory guarantee from a first-class Nigerian bank in the sum of $19,752,304.84 plus interest and costs to secure the plaintiff’s claim, or until further orders.”

The court further directed the Nigerian Navy, NUPRC, NIMASA, and the Harbour Master of the Nigeria Ports Authority to support the Admiralty Marshall in ensuring the arrest of the cargo and to maintain regular surveillance to prevent dissipation.

Following the court order, a warrant for the arrest and detention of the cargo was issued. On January 10, the court issued a notice of arrest, cautioning all parties against removing or interfering with the cargo without written authority from the Admiralty Marshall or their substitutes, or face immediate legal action.

The case has been adjourned to February 10, 2024.

FBN Addresses Ongoing Dispute with General Hydrocarbons Limited

Meanwhile, First Bank has addressed its ongoing dispute with General Hydrocarbons Limited (GHL), emphasizing the need for good governance and transparency in the commercial transaction, which has become the subject of litigation.

The bank issued a public statement to clarify the matter and refute what it described as “sponsored but false narratives” in certain media reports.

FBN explained that the controversy centers around credit facilities extended to GHL for the development of oil mining lease assets. These loans were governed by robust agreements that outlined the obligations of both parties, as well as security arrangements to safeguard the transaction.

Despite FBN fulfilling its obligations under the agreements, the bank alleged that GHL violated key terms, including diverting proceeds from the financed project.

“At the root of the present dispute is First Bank’s demand for good governance and transparency in the transaction, which GHL rejected,” the bank stated.

FBN had proposed appointing an independent operator, mutually acceptable to both parties, to manage the financed assets transparently, with the goal of protecting all stakeholders and ensuring value creation. However, GHL declined the proposal and instead demanded additional funding, which the bank considered unjustifiable given the circumstances.

GHL’s refusal to execute the terms required for additional funding led the company to initiate arbitration proceedings and approach the Federal High Court for preservative orders.

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