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$12b missing crude oil revenue suit: Court strikes out Chevron’s objection, awards N100,000 cost against it to FG

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By Onyewuchi Ojinnaka (Senior Correspondent)

Justice Mojisola Olatoregun of a Federal High Court Lagos has struck out a preliminary objection on issue of jurisdiction raised by Chevron  Petroleum Nigeria Limited in one out of many debt recovery suits instituted against it by the Federal Government to recover about $12 billion missing crude oil revenue from some international oil companies.

In the suit, Chevron Nigeria Limited and Chevron Petroleum Nigeria Limited are first and second defendants respectively.

The preliminary objection by Chevron Petroleum Nigeria Ltd, (second defendant) on  jurisdiction of the court was based on grounds of service of court processes.

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In addition to striking out of the objection, the court also awarded N100,000 cost against the second defendant.

Counsel to Federal Government in the suit were Ituah Imhanze and Chineme Onuoma, while the defence counsel to first and second defendants  was  Mrs. Miannaya Essien (SAN).

The defence counsel  had challenged the court’s jurisdiction, urging it to set aside the purported service of an amended writ of summons and amended statement of claim on the second defendant, for being incompetent, arguing that the second defendant was not served with the amended processes in accordance with the provisions of the law.

Delivering its ruling on the objection, the court held that service of originating processes was fundamental to the jurisdiction of the court, adding that such service must be personal except where personal service is not possible.

The judge held that by the provisions of Order 6 Rule 3, of the Federal High Court Civil Procedure Rules, no such service of court processes shall be neccessary, where the defendant by his legal practitioner, undertakes in writing to take service.

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The court further held that where a party by this means, accepts service, it cannot deny same, adding that from records, it could be recalled that the processes were served.

Consequently, the court declared thus: “This application is totally and absolutely a waste of time and it is unbelievable”

After the court’s ruling, FG’s counsel (Imahnze), asked for a cost of N100,000 against the second defendant.

In reaction, Justice Olatoregun awarded a cost of N100,000 against the second defendant, and ordered that the cost should be paid seven days from the date of award.

Meanwhile, the court expressed displeasure, that since 2016 when the case was brought to court, there had been so many applications, which had stalled progress of the suit.

Going forward, the judge sought to know how many witnesses parties were to call, and in response, both the plaintiff and defendant informed the court that they had two witnesses each to call in the trial.
The  matter was therefore  adjourned  till May 16 and 17 for trial.

The suit was filed by the Federal Government through its Counsel, Prof Fabian Ajogwu, (SAN) in 2016, against some International Oil Companies (IOCs) to recover lost revenues arising from undeclared and under-declared crude oil shipments from Nigeria to different parts of the world.

The Federal Government had also sued Total E&P Nig. Plc, alleging that the oil company under-declared the volume of crude oil it shipped out of the country between January 2011 and December 2014.

The oil company was  accused of  short-changing the Government of Nigeria to the tune of 245 million dollars, by allegedly shipping several barrels of crude oil out of Nigeria, without making due remittance to the government.
The FGN also filed similar suits against Agip Oil Company Ltd, Shell Western Supply & Trading Ltd among others.

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