New Telegraph

Court slams N.2m fine on Ondo Govt over failed bid to join Ororo oil field suit

Justice Muslim Hassan of a Federal High Court in Lagos has slammed a fine of N200, 000 on Ondo State Government following its failed bid to join a suit challenging the Federal Government’s revocation of the Ororo Marginal Oil Field license.

 

The Ororo field, discovered in 1986, is located within OML 95 in shallow waters offshore Ondo State. It is owned by Owena Oil and Gas Ltd, with Ondo State being one of its shareholders.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Following the revocation of the license in April, Ondo State brought an application seeking to join the suit marked FHC/L/CS/587/2020 filed by Owena.

 

The Minister of Petroleum Resources, Department of Petroleum Resources (DPR) and Guarantee Petroleum Company Ltd are first to third respondents in the suit.

 

When the application was heard in October, lawyer representing Ororo oil field, Kemi Pinheiro (SAN), contended that the case challenging the license revocation “is totally different” from a shareholders’ case. He prayed the court to dismiss the Ondo state’s application. In his ruling on the request of Ondo State, Justice Hassan upheld Pinheiro’s argument and dismissed the application.

 

The judge held that the state’s action was unnecessary because only a company that has suffered injury can bring an action to redress same and not its shareholders.

 

Hassan said: “I have listened to the parties, read all the processes and affidavit in support of application to be joined. I hold that only a company who suffers wrongdoing can institute an action to redress such act. “I therefore hold that the motion for joinder brought by the Ondo State government is unmeritorious which ought to be dismissed. Consequently, this application is hereby dismissed.”

 

Afterwards, lawyers representing Ororo oil field and DPR prayed the court for N500,000 costs against Ondo State. In a ruling on the request, Justice Hassan awarded N100,000 for each of them against the Ondo State Government and adjourned further proceedings in the matter to January 14. The judge had on May 27 restrained the Minister of Petroleum Resources and DPR from revoking the Ororo Marginal Field in OML 95 pending the determination of the substantive suit.

 

He granted an order of interim injunction against the respondents based on an ex-parte motion. Hassan ordered parties to maintain status quo in relation to the revocation pending the determination of the motion on notice.

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