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According to the Court of Appeal, First Bank of Nigeria’s appeal against General Hydrocarbons Limited (GHL), a business associated with media entrepreneur Nduka Obiagbena, is valid.

Consequently, a previous order in favor of GHL issued by a Federal High Court in Port Harcourt has been overturned by the appellate court.

In its decision, the Court of Appeal reversed the March 2025 opinion of Justice E.A. Obile, which had revoked enforcement orders that the bank had acquired in January.

Although the verdict makes clear the dispute’s interim status, it does not address the substantive problems that still need to be resolved by the trial court or possible arbitration.

The Chief Registrar of the Court of Appeal, working with the Admiralty Marshal, has been appointed by the Appeal Court to assume responsibility for, and protect any crude oil cargo on board the FPSO Tamara Tokoni from expropriation, waste, dissipation, and/or fraudulent disposition by any of the parties (FBN & GHL) while a suit between the First Bank of Nigeria and General Hydrocarbons Limited and others is being heard and decided by the trial court and/or court of arbitration.

A three-member panel headed by Justice Polycap Tema Kwahar granted First Bank’s appeal, stating that the case’s interest required that the res be maintained until the High Court and arbitration panel decided the matter.

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Moreover, the court issued an order mandating that the crude oil cargo on board FPSO Tamara Tokoni be sold once the storage tanks on board FSPO Tamara Tokoni are filled and that the proceeds of each sale be deposited into a single interest-bearing escrow account in the Chief Registrar of the Court of Appeal while the suit is being heard in the trial court or the arbitration court.

GHL and Conoil/NNPCL own the crude oil that is in the FPSO.

Legal GHL allegedly owing First Bank $225.8 million.

The claim is vehemently denied by GHL, which asserts that FBN seriously violated the 2021 Subrogation Agreement and therefore no money is owed.

The Court of Appeal has now halted all of that, giving the Chief Registrar, with assistance from the Admiralty Marshall of the Court of Appeal, possession and control of all the crude in the FPSO. In the appeal, GHL accused FBN of abusing an ex parte freezing order when it released a portion of the crude to Conoil and NNPC.

GHL had been given borrowing facilities with the shipment pledged as security.

The parties were instructed to cover all of their own expenses.

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