A Federal High Court in Port Harcourt, Rivers State, has granted First Bank of Nigeria Plc an order to arrest a cargo belonging to General Hydrocarbons Limited. The court order requires the seizure of the entire cargo of crude oil on board the Floating Production Storage and Offloading Vessel Tamara Tokoni until a satisfactory guarantee of $19,752,304.84 is provided by a Nigerian bank.
The bank had taken legal action against General Hydrocarbons Ltd., the cargo of crude oil on board FPSO Tamara Tokoni, and the owners/operators of FPSO Tamara Tokoni. The court granted the order based on a motion filed by the bank, directing the arrest and detention of the cargo. The court also enlisted the assistance of relevant authorities to ensure compliance with the order.
In response to the ongoing dispute, First Bank emphasized the importance of good governance and transparency in commercial transactions. The bank clarified that the disagreement stemmed from credit facilities extended to GHL for oil mining lease asset development. Despite fulfilling its obligations under the agreements, FBN alleged that GHL breached terms, leading to the current legal actions.
First Bank proposed transparent management of the financed assets through an independent operator, but GHL declined and requested additional funding. The bank found this demand unreasonable and proceeded with legal actions due to GHL’s failure to adhere to the agreed terms.