GENERAL HYDROCARBONS LTD v. FIRST BANK OF NIGERIA LTD & ORS

SUPREME COURT OF NIGERIA

(ABBA AJI; SAULAWA; AGIM; NWAOMA UWA; ABIRU: JJ.SC)

General Hydrocarbons Limited (“the Appellant”), having been granted Oil Mining Lease (OML) 120 by the Federal Ministry of Petroleum Resources for a term of twenty years, entered into a Memorandum of Understanding with First Bank of Nigeria Limited (“the 1^st Respondent”) for the funding, development, operation, and optimal exploration of the oil block. Under the arrangement, the 1^st Respondent undertook to finance the Appellant’s operations, while the Appellant agreed that the parties would share the profits from the sale of crude oil produced from OML 120 in the ratio of 50:50. As part of the financing structure, the Appellant was required to domicile the proceeds of all crude oil sales from OML 120 into a designated collection account maintained with the 1^st Respondent. The parties further agreed that the loan facilities advanced by the 1^st Respondent would be repaid from the proceeds of crude oil sales paid into the account before the balance was applied in accordance with the parties’ profit-sharing arrangement.

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Attachment	Size
CASE DIGEST – A CLAIM FOR THE PAYMENT OF CRUDE OIL SALE PROCEEDS DOES NOT FALL WITHIN ADMIRALTY JURISDICTION	13.3 MB