Nigeria’s Supreme Court has ordered the immediate release of crude oil stored aboard the FPSO Tamara Tokoni to General Hydrocarbons Limited (GHL), bringing an end to a protracted legal dispute between the indigenous oil company and FirstBank of Nigeria.
In a unanimous decision delivered on Friday, a five-member panel of the apex court ruled that the disagreement between the parties was fundamentally a contractual dispute and did not fall within the scope of admiralty jurisdiction.
The judgment means the Federal High Court did not have the legal authority to entertain the matter in the first place, prompting the Supreme Court to nullify the earlier proceedings.
Appeal Court Judgment Overturned
By setting aside the decision of the Court of Appeal, the Supreme Court upheld General Hydrocarbons’ appeal and directed that the crude oil aboard the floating production, storage and offloading (FPSO) vessel Tamara Tokoni be released without further delay.
The court also instructed the Chief Registrar of the Court of Appeal and the Admiralty Marshal to facilitate the immediate handover of the crude cargo to General Hydrocarbons.
The ruling was delivered by a panel comprising Justices Uwani Musa Abba Aji, Adamu Jauro, Emmanuel Agim, Tijjani Abubakar, and Habeeb Adewale Abiru.
Legal Battle Comes to an End
The dispute centered on ownership and control of crude oil stored aboard the FPSO Tamara Tokoni, with both General Hydrocarbons and FirstBank asserting competing legal positions over the cargo.
By classifying the disagreement as a contractual matter rather than an admiralty dispute, the Supreme Court effectively removed the basis upon which the Federal High Court had exercised jurisdiction.
The decision marks the conclusion of one of the notable legal battles involving Nigeria’s banking and oil sectors, with General Hydrocarbons emerging victorious after the apex court affirmed its right to take possession of the crude oil.
