Supreme Court Awards Tamara Tokoni Crude To General Hydrocarbons

The Supreme Court has set aside the judgment of the Court of Appeal which ordered the seizure  of an oil vessel and its cargo of crude oil belonging to General Hydrocarbons Limited (GHL) to settle a dispute over alleged breach of contract with the First Bank of Nigeria (FBN).

In a unanimous judgment, a five-member panel of the apex court ordered the return of the ceased vessel and the proceeds from the sale of its content back to its rightful owner, the GHL.

In setting aside the decision, the Apex Court said the Federal High Court was wrong to have assumed jurisdiction in a matter which is not a maritime dispute, stating it is purely financial and contract related.

The court said the case is on breach of contract and therefore does not give the First Bank of Nigeria the right to cease the oil vessel and sell its content to recover a debt.

In a unanimous decision delivered on Friday, a five-member panel of the apex court ruled that the dispute was contractual in nature and did not fall within the scope of admiralty matters.

The court therefore held that the Federal High Court lacked the jurisdiction to entertain the case.

Based on its findings, the Supreme Court set aside the earlier judgment of the Court of Appeal and upheld the appeal filed by General Hydrocarbons Limited.

The panel, made up of Justices Uwani Musa Abba Aji, Adamu Jauro, Emmanuel Agim, Tijjani Abubakar, and Habeeb Adewale Abiru, directed the Chief Registrar of the Court of Appeal and the Admiralty Marshal to immediately release the crude oil aboard the FPSO Tamara Tokoni to GHL.

The judgment brings to a close the legal battle between General Hydrocarbons Limited and First Bank of Nigeria over the ownership and control of the crude cargo stored on the floating production, storage and offloading (FPSO) vessel.