Arco’s Suit: Court to Hear Agip’s Application on Jurisdiction Today

A Federal High Court sitting in Port Harcourt will today decide whether it has jurisdiction to hear the suit filed by an indigenous oil servicing firm, Arco Group Plc, against the Nigerian Agip Oil Company Limited.

Arco had dragged Agip, Nigerian National Petroleum Corporation (NNPC), Conoco Philips Petroleum Nigeria Limited and the Nigeria Petroleum Investment Management Services (NAPIMS) before the court to determine whether in view of the provision of section 3 subsections (2) and (3) of the Nigerian Oil and Gas Industry Content Development Act, 2010, having demonstrated ownership of equipment, Nigerian personnel and capacity to execute the task of performing the contract for the maintenance service of rotating equipment at the Nigerian Agip Oil Company gas plants at OB/OB, Ebocha and Kwale, it is entitled, being a Nigerian company, to the exclusive right to be considered and granted such contract including any extension of its duration?

The presiding judge of the court, Justice Lambo Akanbi, while ruling on the ex-parte application brought by Arco, had on February 4 restrained Agip and its agents from awarding or taking any step to award to any person, company or firm except Arco any contract whether designated as interim, stop-gap for the maintenance of gas turbines or rotating equipment at Agip’s OB/OB, Ebocha and Kwale gas plant pending the hearing and determination of the motion on notice for the order of interlocutory injunction.

Since the defendants were alleged to be avoiding service of the court’s order, the court again ordered that they be served by substituted means through advertorial in two national newspapers, namely THISDAY and The Guardian.

It also ordered the Managing Directors of Agip and Plantgeria Company Limited, Mr. Insula Massimo and Mr. P. L. Carrodano to appear before him on Monday, April 27, to inform the court why they should not be committed to prison for disobeying the order of the court.

On the next adjourned date, Arco informed the court that Agip had disobeyed its orders, prompting it to file committal processes against the defendants.

This made Justice Akanbi to fix June 23 to hear the contempt charges filed against Agip.

He therefore ordered the two chief executive officers to ensure that they are present in court on the said date to show cause why an order for their committal to prison should not be made.

But in a move alleged to be a ploy to delay and frustrate the suit, Agip has challenged the court’s jurisdiction to hear the suit.

In the substantive suit, Arco is also seeking the court to determine whether the persistent and deliberate refusal by Agip to give exclusive consideration to it in respect of the contract for the maintenance and service of rotating equipment machines at the defendnant’s gas plants at OB/OB, Ebocha and Kwale and to grant an extension of such contract by way of an interim or stop-gap contract is not a violation of the spirit and letters of section 3 subsections (2) and (3) of the Nigerian Oil and Gas Industry Contract Development Act, 2010.

The firm is seeking a declaration that by virtue of section 3 subsections (2) and (3) of the Nigerian Oil and Gas Industry Content Development Act, 2010, having demonstrated ownership of equipment, Nigerian personnel and capacity to execute the task of performing the contract for the maintenance and servicing of the rotating equipment machines at the Nigerian Agip Oil Company gas plants at OB/OB, Ebocha and Kwale, it is entitled, being a Nigerian company, to the exclusive right to be considered and granted such contract including any extension of its duration.

It is further asking the court to declare that the persistent and deliberate refusal by the first defendant to give exclusive consideration to it in respect of the contract for the maintenance and servicing of the rotating equipment machines at the Nigerian Agip Oil Company gas plants at OB/OB, Ebocha and Kwale, and to grant extension of the contract by way of an interim or a stop-gap contract, is a deliberate violation and sabotage of both the spirit and letter of section 3 subsections (2) and (3) of the Nigerian Oil and Gas Industry Content Development Act, 2010, and is, therefore, illegal, unlawful, ultra vires its powers under the law, null and void and of no effect whatsoever.