General Hydrocarbons Limited (GHL), owners and operators of OML 120, Deep Offshore Nigeria, has addressed a recent Mareva court injunction that temporarily freezes its assets across banks and digital platforms in Nigeria.
The reaction was contained in a statement dated January 10, 2025, and signed by Nduka Obaigbena, Chairman of the GHL Board.
Nairametrics previously reported that the Federal High Court in Lagos issued several orders, including a Mareva injunction, to freeze assets and accounts linked to General Hydrocarbons Limited, its affiliates, and prominent individuals, including media mogul Nduka Obaigbena.
The court’s decision follows allegations of unpaid loans totaling $225.8 million, owed to First Bank of Nigeria (FBN).
Reaction from GHL
In the statement, Obaigbena noted that amidst the claims and counterclaims surrounding GHL’s oil and gas drilling campaign on OML 120, Deep Offshore Nigeria, the public should be aware that GHL had entered into a Subrogation Agreement at FBN’s alleged request.
He stated that this agreement was aimed at addressing the bank’s non-performing loans (NPLs), which were becoming a systemic risk.
He added that under the agreement, FBN was to finance the exploration, development, and operations of OML 120, with both parties sharing profits.
“First Bank’s share was to be used to liquidate its Non-Performing Loans (NPLs). Following the Subrogation Agreement, we gave them comfort in a Tripartite Agreement, resulting in FBN’s return to profitability and growth,” Obaigbena stated.
However, he alleged that FBN had breached its obligations under both the Subrogation and Tripartite Agreements, leading to the current challenges.
“We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination. We hope for a favorable outcome under our system of justice,” he added.
Obaigbena also accused FBN of disregarding and disobeying a subsisting court judgment in favor of GHL, stating that the bank was allegedly misleading the public.
“Our lawyers are addressing this flagrant breach in the appropriate forum. There is no cause for alarm,” he added.
Obaigbena emphasized that GHL remains a Nigerian-owned company operating in Deep Offshore Nigeria, at depths of 850 to 1,000 meters, and 75 kilometers at sea.
“Our oil and gas campaign has discovered oil and gas to the glory of Nigeria, thanks to the ingenuity of our Nigerian-born engineers and technical partners, including Schlumberger (SLB), Baker Hughes, Century Group, and others,” the statement read.
He reassured stakeholders that GHL’s strong asset base positions the company to meet any financial obligations that may arise.
Obaigbena also called on partners to remain calm as the company seeks resolutions to the dispute through the courts, arbitration, or mediation.
He further claimed that GHL had voluntarily rescued FBN from collapse in the past, highlighting that their collaboration helped resolve FBN’s financial challenges while also contributing to the discovery of crude oil in Nigeria.
What You Should Know
The statement is in response to the Federal High Court ruling, which also barred General Hydrocarbons Limited and associated entities from transferring or dissipating assets while the legal dispute over unpaid loan facilities is resolved.
The court directed all major commercial banks and financial institutions in Nigeria to block the defendants’ accounts and restrict access to funds or assets up to the claim amount, pending further legal proceedings.
The injunction affects banks such as GTBank, Access Bank, Zenith Bank, and First Bank, as well as fintech platforms including Flutterwave, Paystack, and Piggyvest.
These entities were instructed not to release funds or handle assets linked to the defendants, including accounts associated with individuals like Efe Damilola Obaigbena and Olabisi Eka Obaigbena, and corporate entities such as GHL 121 Ltd and CESL Oyo Production.
Parties involved are expected to appear in court in the coming weeks to address the outstanding debt claims by FBN.
