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W0W! 'Oil theft' case: Court summons three banks for alleged contempt

chuks oti

Mar 10, 2021

A Federal High Court in Lagos has summoned three bank secretaries and chief financial officers for allegedly disobeying its interim orders of January 25, 2021 directing their banks to block Shell Petroleum Development Company of Nigeria (SPDC) and its subsidiaries' accounts.

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Justice Oluremi Oguntoyinbo ordered the officials to appear before the court on the next adjourned date of March 29, 2021.

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The judge made the order while ruling on applications in a suit by Aiteo Eastern E&P Company Ltd against SPDC and four others.

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Aiteo is claiming about $4 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.

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Joined as respondents in the suit marked FHC/L/CS/52/2021, are: 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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Justice Oguntoyinbo had granted an interim mareva injunction directing 20 commercial banks to block SPDC and its subsidiaries' accounts.

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17 of the banks are said to have complied with the order.

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The order was in a bid to recover the cash equivalent of more than 16 million barrels of crude oil allegedly diverted by the oil giant from AITEO Eastern E & P Company Ltd.

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The court had issued the injunction barring Royal Dutch Shell's Nigerian subsidiaries from withdrawing money at 20 local banks until it "ringfencesÔÇØ potential damages in a lawsuit brought against the company by Aiteo.

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— chuks oti

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