The Nigerian Upstream Petroleum Regulatory (NUPRC) has asked the Federal High Court, Abuja to dismiss the suit filed by an oil and gas firm named NJ Exploration Limited, which sought a cost of N100 million against the NUPRC over the alleged withdrawal of its oil prospecting licences (OPLs) 321 and 323.

The NUPRC instituted motion on notice against the firm’s suit marked FHC/ABJ/CS/334/2024, describing it as a gross abuse of court process.

Nairametrics previously reported that the firm’s lawyer, Ahmed Raji (SAN), claimed that his client was part of two consortia of companies to whom OPLs 321 and 323 were respectively awarded to by the Department of Petroleum Resources, via letters dated 20th October 2020.

According to him, his client was shocked to have its OPL withdrawn by the defendant on the grounds of revenue concerns, among others.

The plaintiff, which is the oil exploration company, also contended that it did not receive any default notice from the NUPRC Bprior to receipt of the OPLs withdrawal letter.

Raji sought,”

• “An Order setting aside the Defendant’s withdrawal of Oil Prospecting Licences [OPLs] 321 and 323 from the Plaintiff, vide its letter of 22nd January 2024; for being in breach of the provisions of Section 96 and/or Section 97 of the Petroleum Industry Act, 2021.
• “The cost of this action assessed at N100,000,000.00 [One Hundred Million Naira] only.”

NUPRC Reacts

But in NUPRC’s motion on notice dated May 2,2024 and seen by Nairametrics, its counsel, Ojukwu Chikaosolu SAN submitted that while the firm initiated the suit before the Court in Abuja by a Writ of Summons, one Owel Petroleum Services Limited as Plaintiff had already brought an action at the Lagos Judicial Division of the Court in Suit No. FHC/L/CS/2233/2022 , seeking declarative and injunctive reliefs in respect of the same OPLs 321 and 323 in dispute.

He argued that the firm who is a defendant in the case in Lagos, also filed its defence in the said action supporting the NUPRC’s revocation and re-award of the said OPLs 321 and 323.

He submitted that for the firm to run to Abuja amid the pendency of a similar suit in Lagos, amounts to an abuse of court.

He urged the Court to either transfer the matter back to its Lagos division or dismiss it.

Chikaosolu stated,

• “During the pendency of the said Suit No. FHC/L/CS/2233/2022, the Claimant/Respondent purports to bring this current action against the Defendant/Applicant in gross abuse of judicial process.
• “The parties, facts, and subject matter in Suit No. FHC/L/CS/2233/2022 are the same as the subject facts, subject matter, and parties in the present suit and this present suit constitutes a multiplicity of actions regarding the same subject matter to wit; OPLs 321 and 323.”

He prayed,

• “An order of this Honourable Court transferring Suit No. FHC/ABJ/CS/334/2024 pending before this Honourable Court to the Lagos Division of this Honourable Court, to be heard together with a sister case of the same facts, parties, and subject matter in Suit No. FHC/L/CS/2233/2022 between OWEL PETROLEUM SERVICES LIMITED Vs. NJ EXPLORATION LTD & 2 ORS. In the alternative,
• ” An order dismissing this suit as same is an abuse of court process and as such has robbed this Honourable Court of the jurisdiction to entertain same.”

What transpired in court

At the resumed sitting, counsel to NUPRC announced appearance and asked the court to grant his motion.

But the firm’s lawyer, A.A Usman sought for more time to respond to the motion, saying the legal team was served with the process on May 2, 2024.

Justice Inyang Ekwo subsequently adjourned to May 15, 2024 for hearing.

What you should know

• NUPRC is a Federal Government agency responsible for ensuring compliance with petroleum laws, regulations and guidelines in the upstream oil and gas sector, in Nigeria.
• The OPL is granted by the Nigeria’s Minister of Petroleum Resources to an applicant company registered for oil exploration and production business in Nigeria.
• The license granted to a licensee is what empowers it to conduct extensive oil exploration activities in an area.
• Since the action is based on the law, the Federal High Court has jurisdiction to interpret the relevant laws that apply to the instant case.