Court halts sale of four oil fields amid legal dispute

A judge told a petroleum minister to back off from some oil fields. The Federal High Court ordered Heineken Lokpobiri to maintain the status quo. The order also binds the Attorney General and the upstream regulatory commission. This blocks any action on four specific oil fields pending a final ruling.

Justice Emeka Nwite issued the directive in Abuja. The plaintiffs are Hi Rev Oil Limited and its exploration subsidiary. They sued over the proposed sale or allocation of the fields. These sites are Yorla South in Rivers state and Akiapiri in Bayelsa. Also included are Diebu Creek East in Bayelsa and Idiok in Akwa Ibom.

The companies claim these fields are replacement assets. They say a prior settlement agreement promised them replacements. This agreement became a consent judgment from an earlier dispute. The government withdrew its original allocations at the Utapate Oil Field and another license. The plaintiffs argue this withdrawal was unreasonable.

Their lawyer, Ambrose Unaeze, presented the application. He said his clients took substantial steps based on the promised licenses. This included plans for a petroleum refinery. Unaeze argued their legal rights are now under threat. The government offered the replacement fields for public bidding.

Lawyers for the defendants appeared in court. The AGF's counsel stated his office does not allocate oil blocks. Lawyers for the minister and the commission opposed the plaintiffs' request. They had filed preliminary objections and counter-affidavits. They argued against giving any undertaking.

The judge pressed the minister's lawyer on proper conduct during litigation. The lawyer acknowledged that parties should maintain the status quo. Justice Nwite then formally ordered all sides to preserve the current situation. This prevents any sale or allocation before the case concludes.

The matter is adjourned for a later hearing this month. The court will then consider the substantive arguments from both sides.
 

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