Nigeria wins case against another oil company

A Federal High Court sitting in Lagos on Monday, December 5, 2016 struck out the preliminary objection filed by Brasoil Services Company Nigeria Limited (“Brasoil”) against the Federal Government of Nigeria (FGN).

Recall that in September, attempts by oil giant, Chevron, to frustrate the Federal Government’s effort in recovering stolen oil revenues from notable International Oil Companies, was scuttled by the court.

A Federal High Court sitting in Lagos had on September 30, 2016 struck out the preliminary objection filed by Chevron Nigeria Limited seeking to have the suit by the Federal Government of Nigeria stopped.

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According to the ruling: "In the suit, it was discovered that the crude oil declared in the United States of America to have been exported from Nigeria, were neither declared nor inspected by the relevant authorities in Nigeria's bureaucracy.

According to latest reports from the House of representatives, Nigeria lost close to N4trillion in non-declared oil lifting by international oil companies, between 2010 and 2014.

The preliminary objection dated March 24, 2016, which came on the heels of the lawsuits filed by the FGN against notable multinational oil corporations, sought an order of the Court striking out the suit filed by the FGN on the grounds that the FGN has failed to disclose a reasonable cause of action against the Defendant.

In opposition to the preliminary objection, the Federal Government through its Legal Team led by Professor Fabian Ajogwu (SAN) filed a counter affidavit; praying the court to discountenance the prayers of Brasoil and hold that there exists a right and a reasonable cause of action against the Defendant.

After a thorough consideration of the totality of the case, the Court in its ruling delivered on Monday, agreed with the arguments of counsel to the FGN and held that Brasoil Oil Services Company Nigerian Limited had a case to answer considering all the documents filed by FGN.