Kaztec asks a’court to upturn judgement affirming NNPC’s ownership of OMLs

Kaztec Engineering Limited, an indigenous oil and gas engineering company, has approached the supreme court over a judgement on oil mining leases (OMLs) 123, 124, 126, and 137.

Kaztec Engineering had sought a declaration that the OMLs be awarded to it.

The firm also sought an order setting aside the award of 51 percent equity participation in the OMLs to Mars Exploration & Production Company.

The lower court, had on October 28, 2021, issued an interim order directing the parties to the suit (including the minister of petroleum resources) to maintain the status quo in relation to the OMLs.

However, in the judgment delivered on December 15, 2023, the court held that the originating summons was incompetent, having failed to join a necessary party — Salvic Petroleum Resources Ltd — to the suit.

In her judgement, Nkeonye Maha had struck out the suit with the number FHC/ABJ/CS/1291/2020.

The suit was filed against the ministry of petroleum resources, the attorney-general of the federation, Mars E&P; the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Petroleum Company (NNPC) Limited.

THE GROUNDS OF APPEAL

Kaztec Engineering asked the appellate court to grant the appeal and set aside the entire ruling that dismissed complaints and claims in its notice of appeal, which was filed by its legal team, led by Jeph Njikonye.

The appellant prayed the court to invoke sections 15 and 16 of the Court of Appeal Act.

Additionally, the firm asked the court to assume jurisdiction to determine its second amended originating summons and resolve issues five endorsed on its amended originating summons filed in its favour, on March 22, 2023.

The appellant also argued that the trial court erred in law when it struck out its suit on the grounds of nonjoinder of Salvic Petroleum, citing established legal precedent that a party’s nonjoinder does not terminate a cause of action.

Njikonye argued that the joint award of the disputed OMLs to the appellant and Salvic Petroleum was clearly delineated to be on equity participation of Kaztec.

He pleaded with the court to rule that Kaztec had a distinct cause of action against the respondents to commence its suit and seek relief.

Furthermore, Njikonye contended that the trial court erred in law when it determined that the court was ineligible to consider the claim since no document proving the payment of the signature bonus had been produced.

He said the lower court, had in its rulings, affirmed the appellant’s reasonable cause of action against the respondents.

The lawyer said as Salvic Petroleum was not a party to the suit, the appellant did not request any relief from it.

He urged the court to hold that “the appellant had locus standi to commence and maintain the action in its personal capacity, and that the non joinder of Salvic Petroleum Resources Ltd. as a party could not have defeated the Appellant’s cause of action”.

Njikonye also said the matter submitted to the lower court was for the interpretation of section 2(1)(b); 12(1); paragraph 35 schedule 1 of the Petroleum Act; letters of award of OMLs 123, 124, 126, and 137, dated March, 30 2021, April 7 2021, and June 11, 2071; as well as a determination that the review of the award of the OMLs to the appellant in the circumstances of the case was wrongful.

He said the issue of payment of signature bonus would not arise until the award to the appellant is restored.

But following the court judgement, the appeal entered by Kaztec Engineering would act as stay of further action on the subject matter until the determination of the suit.