Court Orders Arrest Of Vessel For Illegal Diversion Of 12.7m Litres Of Petrol

Justice Akintayo Aluko of the Federal High Court in Lagos has directed the Admiralty Marshal to arrest and detain the oil-carrying vessel MT Ostria until its owners provide a bank guarantee to cover the claims of NNPC Retail Limited regarding the non-delivery of 12,681,960 litres of Premium Motor Spirit (PMS), commonly known as petrol, of which over nine million litres were found to be water.

The tanker, its owners, and the storage facility were alleged to have been negligent or in breach of contract of carriage or bailment. They discharged the missing petrol to another tanker out of the consignment it was to deliver to a tank farm at Koko Port, Delta State, and refilled the tank with seawater on the ship’s course to Koko Federal port.

Joined in the suit with the vessel as defendants are Orion Marine Limited, its bareboat charterer, and Taurus Oil and Gas Limited, the owners of the petrol storage called Taurus Storage, Koko,

Justice Akintayo Aluko issued the arrest order following “Admiralty Action in Rem” proceedings initiated by NNPC Retail Ltd’s lawyer, Mike Igbokwe (SAN), who sought the vessel’s arrest along with other legal actions due to the loss of the PMS.

The judge also ordered the Harbour Master of the Nigerian Ports Authority, Lagos, to collect and deliver to the Admiralty Marshal or retain all trading and other certificates of the first defendant for safekeeping until the first and second defendants comply with the conditions attached to the order of arrest and detention issued by this Court.

The court further granted an order permitting either the Chief of Naval Staff to retain the Nigerian naval personnel already onboard the detained first defendant or to assign four of their personnel to ensure the security of the first defendant. This includes taking necessary measures such as regular patrols and surveillance around her location to prevent any escape from the judicial arrest and detention until the 1st and 2nd defendants comply with the conditions of this Court’s order.

The judge, however, directed the Plaintiff/Applicant to file an undertaking as to damages to indemnify the Defendants/Respondents in case this order should not have been made.

At the court’s last sitting, Mike Igbokwe (SAN) represented the plaintiff, while J.J. Usman (SAN) represented the second defendant; the third defendant was unrepresented.

Igbokwe informed the Court that the first defendant was arrested by the Admiralty Marshal of this Honorable Court on January 17, 2025, and that the second and third defendants had been duly served with the necessary originating processes filed in this case.

Additionally, Igbokwe brought to the Court’s attention that the learned counsel for the first and second defendants had approached him before the proceedings regarding the possibility of engaging in settlement discussions.