The Federal High Court (Abuja Divsion) Coram N.E. Maha J. today 15th December 2023 struck out Suit No.: FHC/ABJ/CS/1291/2020 between Kaztec Engineering Ltd v. (1) Ministry of Petroleum Resources; (2) Attorney General of the Federation; (3) Mars Exploration and Production Company Ltd; (4) Nigerian Upstream Petroleum Regulatory Commission; & (5) NNPC Ltd, which concerns OMLS 123, 124, 126 and 137.

The Plaintiff had sought, amongst other things, a Declaration that OMLs 123, 124, 126 & 137 had been awarded to them and an Order setting aside the award of 51% equity participating in the said OMLs to Mars E & P.

On 28th October 2021, the Federal High Court Coram Ekwo J. had issued an interim order directing the Parties to the suit (including the Minister of Petroleum Resources and the NUPRC) to maintain the status quo in relation to the said OMLs.

However, in the judgment of the Court delivered on 15/12/2023, the Court held that the Originating Summons was incompetent, having failed to join a necessary party (Salvic Petroleum) to the suit. Consequently, the suit was struck out.

In effect, with the striking out of the suit, the order of injunction earlier made in the suit becomes extinguished.

It is useful to note that since all of Kaztec Engineering Ltd, Mars Exploration and Production Company Ltd, and Slavic Petroleum Resources Limited, did not pay the signature bonuses for the award within the timelines prescribed for it in their respective letters or award, the award had lapsed and the awardees no longer had any interest in the assets, Accordingly, OMLs 123,134,126 and 137 has formally reverted to NNPC Limited and NNPC Limited has all the rights of concessionaire in the asset, subject to such requirements as the Commission may impose in accordance with extant laws.

This judgement is a win for the Nigerian upstream sector and the Nigerian economy as a whole as it has freed a natural resource for utilisation without any legal encumbrances.