Statoil Nigeria Limited V. Inducon Nigeria Limited & Anor (2018)

LAWGLOBAL HUB Lead Judgment Report

IBRAHIM TANKO MUHAMMAD, J.S.C.

This is an interlocutory appeal by the appellants against the Ruling of the Court of Appeal, Lagos Division (the Court below herein), delivered on the 12th of March, 2012 in Appeal No. CA/L/284/2011, between the parties herein. The Court below dismissed the appellant’s application of 7th March, 2011 wherein it sought leave of the Court below to adduce further evidence. That dismissal of the appellant’s application by the Court below is the subject matter of this appeal.

SUMMARY OF FACTS

By a writ of summons of 22/2/2010, the (plaintiffs) respondents (herein), instituted an action against the (defendant) appellant (herein), at the Federal High Court, Lagos (trial Court), alleging that:

a) “Sometime in 1979, the Federal Government of Nigeria nationalized all the assets and interest of British Petroleum Company Limited (BP) and British Petroleum were compelled to leave Nigeria.

b) In 1990, BP informed the respondents that it was interested in pursuing opportunities in the Nigerian Oil Industry in alliance with the appellant.

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c) The respondents were retained by the alliance to negotiate its entry into the Nigerian oil industry.

d) The respondents succeeded in bringing the BP/Statoil alliance into Nigeria in 1991 further to which the Alliance applied for and was granted some concession acreage.

e) It was agreed that the respondents’ consideration for services rendered to the alliance would include “a leasehold interest in the concession expressed as a net profit interest in the production from any oil mining lease allocated to the alliance pursuant to the efforts of the plaintiffs.”

f) BP confirmed the agreement of the parties by assigning a 1.5% leasehold interest and thereby executing a formal Net profit interest agreement with the respondents.

g) The appellant has however refused to fulfill its obligation by executing a similar Net Profit Interest Agreement with the Respondents.”

The plaintiff then sought several reliefs from the trial Court including:

A declaration that the respondents are the assignees of a leasehold interest or Net Profit interest of 1.5% out of the appellant’s interest in the Agbani field in consideration of the business development successes it achieved for