Unpaid Debts: Trouble for PEPL, As Court Moves to Wind Down Asaramatoru Oil Field Over Unpaid Debts

A Federal High Court sitting in Lagos has granted an interlocutory injunction seeking to commence the process of winding down the operations of Prime Exploration and Production Limited.

The order is sequel to a petition brought by Well Fluids Limited over issues believed to be related to a long outstanding unpaid debts.

In a positive response to the prayers of the petitioner, Justice A. Lewis-Allagoa ordered, amongst other things that the respondent, Prime Exploration and Production Limited) and 19 other institutions, including 16 commercial banks, the Central Bank of Nigeria (CBN), the Nigerian Interbank Settlement System (NISS), as well as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), all of whom are “Affected parties”, stop withdrawals of funds from the accounts of the petitioner in all the affected banks.

The order read in part:

“That an Order of interlocutory injunction is granted restraining the Respondent by itself or any of its relatedentities from seeking approval, consent, of its partner and NUPRC for disposing, assigning, transferring, encumbering the Respondent’s interest in any of its assets, including (Asaramatoru Marginal Field) in OML 11 and restraining the NUPRC whether by itself alone with other governmental agencies from approving, consenting to, continuing to consent orptherwise recognizing or giving effect to any transaction purporting to transfer, assign, transfer, encumbering or otherwise dealing with any of Respondent’s interest (held directly or indirectly) by itself or through any of its related entities in Asaramatoru Oil Field in OML 11 or any other petroleum asset pending the hearing and determination of the Petition.”

The court further ordered that any pressing funds withdrawals from the said accounts, especially for the payment of staff salaries and other commitments must be with the express written permission of the petitioner, until the hearing and determination of the case, or until the court rules otherwise.

According to the injunction, a Certified TRUE COPY of which was obtained by this medium, Justice Lewis-Allagoa further granted an order “restraining anyone from enforcing or purporting to continue to enforce any judgment or security against the assets, including Asaramatoru Marginal Field inOML 11 of the Respondent, and further restraining officers, shareholders and directors of the Respondent from altering, hiding, damaging or otherwise changing any of the records of the Respondent pending the hearing and determination of the petition”, adding that the status quo ante bellum must be maintained with regards to the funds, property, assets including OML 11(Asaramatoru Marginal Field) of the Respondent pending the hearing and determination of the petition.
The petition, in this instance, is the eventual winding down of the operations of the Respondent, Exploration and Production Limited.

In a separate injunction, the court also granted the petitioner the permission to also publish the details of the the injunction freezing the bank accounts of the respondent.
In another motion moved moved by petitioner’s counsel, Uche Val Obi (SAN), Court also directed the advertisement of the petition in two major daily newspapers and the Official gazette of the Federal government, and thereafter adjourned for further proceedings