N4.7bn debt: Oando Vs Intels at Federal High Court sitting in Port Harcourt, Rivers

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The Oando Energy Services Limited, (A.K.A OES Energy Services Limited) may soon forfeit three of its crude oil drilling rigs, as a Federal High Court sitting in Port Harcourt, Rivers State has ordered the arrest and detention of the rigs, over the debts of US$15,399,524.84 (equivalent of N4.7 billion) and N14,169,164.80.

The arrest and detention order for the drilling rigs OES TEAMWORK, OES INTEGRITY AND OES PASSION was made by the Court’s Vacation Judge, Justice J.K. Omotosho on 17th August 2017; consequent upon suit number FHC/PH/CS/102/2017 filed by oil and gas logistics services giant, INTELS Nigeria Limited against the three drilling rigs highlighted as 1st to 3rd Defendants; Oando Energy Services Limited, Oando Marketing PLC and Oando Plc as 4th to 6th Defendants respectively.

The court ordered that the three drilling rigs, moored at the Federal Ocean Terminal (FOT), Onne Port Complex in Onne, Rivers State be detained, pending the provision of a sufficient and acceptable bank guarantee from either the United Bank for Africa PLC (UBA), Guaranty Trust Bank PLC (GTB), Zenith Bank PLC (ZBN) or First Bank of Nigeria PLC (FBN) by the Defendants to cover the debt of US$15,399,524.84 and N14,169,164.80; being the amount allegedly owed by Oando Energy Services Limited, for general port and facilities services, provided at the port for the three rigs over an extended period of time.

Justice Omotosho has fixed further hearing in the matter for 30th August 2017.

Oando PLC is currently being investigated by the Securities and Exchange Commission (SEC) over alleged malpractices in the company’s financial statements.

The investigation was reported to have been triggered by a petition filed by some investors following the $1.65 billion paid by Oando PLC for the acquisition of the oil production assets of ConocoPhilips in 2014.

It was however learnt that the company was fully cooperating with SEC in the ongoing investigation.

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