The Appeal Court sitting in Abuja has ordered the sale of crude oil stored on the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni, which is the subject of the legal dispute between First Bank of Nigeria and General Hydrocarbons Limited (GHL).
In a unanimous ruling by a three-man panel led by Justice Polycap Kwahar, the appellate court ordered that court officials hold the proceeds from the sale pending the appeal’s determination.
Justice Kwahar, who read the decision, held that preserving the cargo is in the interest of justice, given the potential risks of expropriation and waste.
In collaboration with the Admiralty Marshal, the upper court further directed the Chief Registrar of the Court of Appeal to take control of the crude oil.
Justice Kwahar held, “Once the storage tanks on the FPSO are complete, the cargo will be sold, and the proceeds will be deposited into an interest-bearing escrow account managed by the court.
First Bank had sued GHL, claiming that the oil company owed it $225.8 million.
First Bank and its trustees obtained a Mareva injunction from the Federal High Court in Rivers State in 2024 to freeze the assets of GHL and its associates.
Justice E.A. Obile lifted the order in January this year, prompting the bank to appeal.
However, GHL denies this claim, stating that First Bank has repeatedly breached the 2021 Subrogation Agreement and that no payment is due.
In the appeal, GHL accused First Bank of abusing Ex Parte freezing orders by selectively releasing portions of the crude in the FPSO to Conoil and NNPC.
The Court of Appeal has now halted these actions and granted all possession and control of the crude in the FPSO to the Chief Registrar, assisted by the Admiralty Marshal of the Court of Appeal.
