THE Appeal Court sitting in Abuja has appointed the Chief Registrar of the Court of Appeal, in liason with the Admiralty Marshal to take charge, possession and to secure any cargo of crude oil on board FPSO Tamara Tokoni against expropriation, waste, dissipation and or fraudulent disposition by any of the parties (FBN & GHL) pending the hearing and determination of a suit before the trial court and or court of arbitration in the case between the First Bank of Nigeria and General Hydrocarbons Limited and Others.
A three-man panel led by Justice Polycap Tema Kwahar, while allowing the appeal filed by First Bank, said the interest of justice in the case demanded that the res be preserved pending the determination of the case still pending at the high court and before an arbitration panel.
The court also issued an order directing the sale of the cargo of crude oil on board FPSO Tamara Tokoni upon the storage tanks on board FSPO Tamara Tokoni becoming full, and to pay the proceeds of each sale into a single interest yielding escrow account in the name of the Chief Registrar of the Court of Appeal, pending the hearing of the suit before the trial court and or before the court of arbitration.
The FPSO has crude oil belonging to GHL, and Conoil/ NNPC.
First Bank claims that GHL owes it $225.8 million debt. However, GHL strongly denies the claim, saying FBN severally breached the 2021 Subrogation Agreement and no payment is due.
In the Appeal, GHL accused FBN of abusing ex parte freezing orders when it selectively released part of the crude in the FPSO to Conoil and NNPC but the Court of Appeal has now stopped all that, giving all possession and control of all crude in the FPSO to the Chief Registrar assisted by the Admiralty Marshall of the Court of Appeal.
In its ruling on Thursday, the Appeal Court said the main issue in contention was the need to preserve the res, being crude oil in FPSO.
It also ordered that proceeds from the sale of the cargo be paid to an escrow account in the name of the Chief Registrar.
Meanwhile GHL and First Bank are currently in arbitration.
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