Oil firm sues FG over alleged cancellation of permit

A Lagos-based oil company, NOV Oil and Gas Limited has instituted a suit against the Ministry of Petroleum Resources and the defunct Department of Petroleum Resources (DPR) before the National Industrial Court over alleged arbitrary and unilateral imposition of a fine.

The company, in suit no. NICN/LA/330/2021, is also suing the Ministry and DPR for undue interference in its internal affairs.

NOV also noted that it had not breached nor violated any term or conditions of the oil and gas industry service permit guidelines, regulations, and requirements.

The claimant alleged that the DPR purportedly cancelled their permits ostensibly for “failure to carry out their functions in a manner consistent with terms and conditions of the Oil and Gas Industry Service Permit (OGISP) as required under the Petroleum Act Cap P10 LFN 2004 and the Regulations made thereunder.”

“In addition to the above, please note that we have a motion for interlocutory Injunction to restrain the DPR from taking any punitive measures against us during the pendency of our suit and this was duly filed and served on the DPR since September 6, 2021. The DPR by its purported letter cancelling our permits is thus acting illegally and in defiance of legal procedures in Nigeria.

“We are equally challenging this present unlawful action of the DPR in the Federal High Court in Lagos State Division.”
We also appeal to all stakeholders, industry operators, service providers and the Nigeria Immigration Service to discountenance the letters purportedly signed by the PENGASSAN Lagos Zone Chairman Mr. Eyam Abeng who is acting in clear disregard of the pending suit at the NICN and the motion for injunction”, it added.