Chevron Loses First Round in FG ‘Missing Crude’ Recovery Case

Source: Daily Times, 1/March/2018

Justice Olatoregun of the Federal High Court, Lagos has struck out a preliminary objection by Chevron Petroleum Nigeria Ltd against the Federal Government of Nigeria in the action to recover almost US$ 12 billion in missing crude oil revenue from international oil companies. The matter came up on Wednesday, 28 February 2018, for ruling on the preliminary objection filed by Chevron, challenging jurisdiction on grounds of service.

Whilst upholding the argument of counsel to the Federal Government, the Court dismissed the objection filed by Chevron holding that the service of the originating processes was due and proper service. The court in its ruling held that the application was “totally unnecessary, an absolute waste of the court’s time” and awarded substantial costs against Chevron Petroleum Nigeria in favour of the Federal Government.

This development is a continuation of the suits by the Federal Government through its Counsel, Prof Fabian Ajogwu, SAN and other lawyers filed in 2016 against some International Oil Companies (IOCs) to recover lost revenues arising from undeclared and under-declared crude oil shipments from Nigeria to different parts of the world. The Federal Government was represented in Court by Ituah Imhanze, Esq. and Chineme Onuoma, Esq.

Chevron was represented by Mrs. Mia Essien SAN and Mr. Tunde Fagbohunlu SAN. The case was adjourned to 16 May 2018 for trial.

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