By our reporter| A Federal High Court sitting in Lagos on Tuesday refused to discharge an interim order it granted, freezing the bank accounts of Shell Petroleum Development Company of Nigeria (SPDC) and that of its subsidiaries.
Justice Oluremi Oguntoyinbo in her ruling, summoned the secretaries and chief financial officers of two banks who allegedly disobeyed the interim ex-parte order directing the freezing of the accounts.
The affected banks and their officials are Citi Bank Ltd., its Company Secretary, Sola Fagbure, and Chief Financial Officer, Sharaf Mohammed, as well as United Bank For Africa (UBA) Plc, its Company Secretary, Bill Andrew Odum, and Chief Financial Officer, Ebenezer Kolawole.
Justice Oguntoyinbo who ordered the affected individuals to appear before the court on the next adjourned date of March 29, 2021, warned that their failure to appear would result in a warrant of arrest being issued against them.
The judge made these orders while ruling on three applications in a suit filed by AITEO Eastern E&P Company Ltd. against SPDC and four others.
AITEO is claiming about $2.7 billion against SPDC over alleged problems with the Nembe Creek Trunk Line (NCTL) pipeline it bought from the Anglo-Dutch group in 2015, and over claims that Shell undercounted its oil exports.
At AITEO’s instance, Justice Oguntoyinbo granted an interim Mareva injunction on January 25, 2021, directing 20 commercial banks to block SPDC and its subsidiaries’ accounts and to bar Royal Dutch Shell’s Nigerian subsidiaries from withdrawing money at 20 banks until it ‘ringfences’ potential damages in the lawsuit brought against the firm.
The order followed AITEO’s bid to recover from Shell, the cash equivalent of more than 16 million barrels of crude oil allegedly diverted by the oil giant.
Eighteen of the banks were said to have complied with the order, except Citi Bank and UBA.
On the respondents’ application to vacate the Mareva injunction and unfreeze the bank accounts, the judge held that the ex-parte order subsists, pending the determination of AITEO’s motion on notice.
She, thereafter, adjourned until March 29 for the hearing of the committal proceedings and other applications.
Joined with SPDC as respondents in the suit were Royal Dutch Shell Plc; Shell Western Supply and Trading Ltd; Shell International Trading and Shipping Company Ltd; and Shell Nigeria Exploration and Production Company Ltd.
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