Court freezes three oil and gas firms’ accounts over non-disclosure of lifted crude oil

The Federal High Court, Lagos, has directed 18 commercial banks in Nigeria to freeze and place a Post No Debt (PND) on any sum of money, standing to the credit accounts belonging to three oil and gas companies, Petralon 54 Limited, Petralon Energy Limited, and Tako E&P Solutions Limited, for their alleged failure to declare the total quantity of crude sold, the amount it was sold, and the royalty paid to the Nigerian government.

The court, presided over by Justice Daniel Osiagor, also ordered the 18 banks to disclose on oath, details of the amounts standing as credit balance in the respective accounts of the oil and gas companies’ accounts.

The court order directed the banks to file an affidavit of compliance within 14 days of receipt of the order.

The banks affected by the court orders are Access Bank, Ecobank Bank, First Bank of Nigeria, First City Monument Bank, Guaranty Trust Bank, Jaiz Bank, Keystone Bank, Polaris Bank, and Stanbic IBTC Bank.

Others are Standard Chartered Bank, Sterling Bank, Union Bank of Nigeria, United Bank for Africa, Zenith Bank, Globus Bank, Titan Bank, Providus Bank, and Fidelity Bank.

Justice Osiagor also made an order of interlocutory injunction restraining the three firms from tampering with, withdrawing, or dissipating the proceeds of the sale of the crude oil produced by the joint venture partners, plaintiff, Petralon Energy Limited and Tako E&P Solutions Limited, who are second and fourth defendants, in the exploration operation at Dawes Island pursuant to the oil mining licence awarded to the plaintiff by the Nigerian Upstream Regulatory Commission (NURC) listed as the third defendant.

The court further ordered the three firms, their agents, directors, representatives and any person acting for, or in trust for them, to disclose on oath the total quantity of crude sold, the amount for which it was sold, the royalty paid to government, and the balance left.

Justice Osiagor made the above orders, after listening to George Duru, counsel to the applicant, Eurafric Energy Limited, who moved in terms of the exparte motion of a suit marked FHC/L/CS/1686/22, filed against the three firms and the NURC.

The case has been adjourned to October 14, 2022.