The court cancels the shell, AFC, the ICC arbitration of others in the energy cause of the time on OML 29

A high Court of the Federal Capital territory (FCT) in Abuja canceled the arbitration procedures at the International Chamber of Commerce (ICC), London, established against the indigenous energy company, Aiteo and & P Company Limited, by a group of credit institutions that have partially financed its acquisition of mining lease contracts (OML) 29.

The Court told the arbitration of a violation of its existent injunction.

Aiteo acquired Oml 29 and the Trunk line of Nembe Creek (NCTL) from Shell in a 3.01 billion dollar historic transaction concluded in 2014. The agreement was largely financed by the billionaire founder Benedict Peters, who contributed to about $ 1 billion of personal fund to close the purchase and restart production.

Judge SB Belgore issued the sentence on Tuesday 8 July 2025, issuing a judgment in a request submitted for some time Energy Nigeria Ltd., a minority contribution to the OML 29 agreement.

According to the documents of the Court, the claims originated from a multi -party financing agreement dating back to 2014. Tempo Energy said that many defendants violated their obligations pursuant to the agreements on the government structure and, without including time, started the procedures at the Alta Court of England and Wales and started the referee before the ICC on 11 December 2020.

To protect your interest, time has filed a cause on January 14, 2021, looking for an injunction to prevent the defendants from adopting further steps in the procedures in the United Kingdom and in the arbitration ICC.

In a related application, submitted for some time through his lawyer, Kehinde Ogunwumiju, San, the High Court of the FCT granted provisional injunctions on January 22, 2021, preventing the defendants from proceeding with the arbitration and the judicial case pending the determination of the motion. The Court also consolidated the suspended questions and updated the matter.

The Suit, Marked FCT/HC/CV/079/2021, Listed Aiteo Eastern and & P Company Ltd, African Finance Corporation, Ecobank Nigeria Ltd, First Bank of Nigeria, Guaranty Trust Bank, Fidelity Bank, Shell Western Supply & Trading, Shell International Trading & Shipping, Citibank Europe (UK Branch), Citibank Na (London Branch), FBN Trustes, Zenith Trustes, Fbn Merchant Bank, Sterling Bank, Union Bank, Zenith Bank and Dame Elizabeth Gloster as attributed.

Dissatisfied with the ruling of the high court, the defendants filed an appeal at the Court of Appeal, Abuja division. However, despite the existing provisional injunctions issued by the high court, the defendants continued with the ICC arbitration procedures in London from 2021 to 2024.

In a unanimous sentence pronounced on April 25, 2025, the Court of Appeal affirmed the validity and existence of the injunctions of January 2021. The appeal court rejected the appeal as abuse of the judicial trial, assigned 1.5 million costs against the defendants and ordered an accelerated audition of the suspended questions at the Alta Court. He also warned that any action undertaken in difficulty of valid orders of the court can be declared null.

Following the judgment of the Court of Appeal, during the hearing taken before the high court from 20 to 20 May 2025, the energy of the time required a restoration order to cancel the arbitration ICC. Ogunwumiju, San, argued that the arbitration proceedings were conducted in the flagrant violation of the orders of the Court.

The legal consultant of Ecobank Nigeria and other defendants, including Mrs. Joke Aliyu and Mr. Babaunde Fagbohunlu, San, presented a preliminary objection that contested the jurisdiction of the court. They argued that the Alta Court FCT was missing from competence to retain foreign arbitration procedures.

Judge Belgore rejected the objection, describing it as incompetent and an abuse of the judicial trial. He ruled in favor of the energy of the time and declared the refereeing procedure of the ECB, having been conducted in violation of the orders of the Court subsistence.

The Court reiterated that the provisional orders of January 22, 2021 remain valid and binding for all sides. He ordered the defendants to desist from taking further challenge measures of his orders and has assigned further N500,000 in costs for the energy of the time. The issue was updated to 29 September 2025, for having heard the consolidated interlocutory applications.

Aiteo had previously sued Shell Petroleum Development Company of Nigeria, supporting fraud, deception and false declaration in the 2014 sale of its 30% share in Oml 29. In the number of Causa FHC/Abj/C8/738/2021, presented in front of a federal repair in front of a compensation in front of compensation in front of a compensation.

The company cited the bad conditions of the activity and repeated attacks by oil thieves on its infrastructure as reasons for its inability to satisfy its financial obligations towards creditors.

According to the documents, the Consortium of Credit Institutes has committed around 2 billion dollars in funding: Zenith Bank – $ 323 million, First Bank and GTBank – $ 200 million each, Fidelity Bank – $ 175 million, AFC – $ 125 million, Ecobank Nigeria and Union Bank – $ 100 million each, Sterling Bank – $ 60 million and 60 million and Shell Western – $ 512 million.

The total equity contribution of Peters included $ 898,237,697.35 in cash and additional $ 257 million when closing the coverage commissions, accessory costs and production restart. Energy time, among other small owners of share capital, contributed with $ 136 million.