Alleged Oil Loss: Court blocks Shell’s bank accounts

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The Federal High Court in Lagos has given an interim injunction directing Nigerian banks to block the accounts of Shell Petroleum Development Company of Nigeria Limited over an alleged loss of 1.02 million barrels of oil suffered by Aiteo Eastern E&P Company Limited.

Justice Oluremi Oguntoyinbo, according to court papers sighted by newsmen, made the order following an ex parte application by Aiteo Eastern E&P Company.

The SPDC, Royal Dutch Shell Plc, Shell Western Supply and Trading Limited, Shell International Trading and Shipping Company Limited and Shell Nigeria Exploration and Production Company Ltd are the first, second, third, fourth and fifth defendants respectively.

Recall that in 2015, the SPDC sold its 30 per cent stake in Oil Mining Lease 29 and the Nembe Creek Trunk Line and related facilities to Aiteo.

The court ruled that the defendants, whether their agents or privies are restrained in the interim from presenting to the named banks any mandate or instrument for the withdrawal of any money and/or funds standing to the credit of any of the accounts of the defendants without first preserving or ring-fencing the sum of $81,251,305.5 or its equivalent in any other official currency.

According to the court, $81,251,305.5 is the value of the plaintiff’s 1,022,029 barrels of crude oil (at the rate of $79.50 per barrel) as stated in the Department of Petroleum Resources letter dated 8th day of July, 2020, and as claimed in this suit.

The court also restrained the defendants from presenting to the banks any mandate or instrument for the withdrawal or any money and/or funds standing to the credit of any of the accounts of the defendants without first preserving and or ring-fencing the total sum of $2,700,583,779.75 or its equivalent in any other official currency.

 

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