Statoil Nigeria Ltd. V. Inducon (Nig.) Ltd. & Anor.(2) (2012)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

HELEN MORONKEJI OGUNWUMIJU, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of Hon. Justice C. E. Archibong of the Federal High Court Lagos, delivered on 6th December, 2010. The learned trial judge had given judgment to the Plaintiffs and made sundry orders on their behalf. The facts that led to this appeal are as follows:

The Plaintiffs, a Nigerian registered company and a Nigerian businessman, sued for enforcement of profit interest in the production of Nigerian offshore oil fields which they claim they are entitled to from a locally incorporated Norwegian oil producer; and for an accounting of all profit thought to have been made since the said production began; together with payment over to them of all accrued earnings arising from said profit interest.

At the trial court, the Claimants now Respondents asked for the following orders.

“i. A declaration that the plaintiffs are entitled to a net profit interest of 1.5% out of the Defendant’s interest in the Agbami field in consideration of the business development successes it achieved for the Defendant.

ii. A declaration that the plaintiffs are entitled to a net profit interest of 1.5% in any and all of the Defendant’s oil and gas interests resulting from the business development efforts of the plaintiffs.

iii. An account of all sums accruing to the Defendant from the Agbami field, together with a statement of projected earnings in respect thereof.

iv. An account of all income due to the plaintiffs from the Defendants in respect of accrued income from the upstream petroleum activities of the Defendant.

v. An account of all income received from or accruing to the Defendant in respect of its upstream activities in Nigeria.

vi. An order for payment by the Defendant to the Plaintiffs of all sums found to be due from the Defendant to the plaintiff on the taking of the account under iii above, and interest on such sums as the court may deem fit from date of first production until judgment.

vii. An order compelling the Defendant to render full and proper accounts as at the date of this action, of all crude oil accruing to the Defendant from the Agbami field operations.

viii. An order compelling the Defendants to deliver up and submit to the plaintiff, details of payments received in respect of the concession interests in Nigeria.

ix. An order of payment of all income derived from all the upstream production available to the Defendant into an interest bearing account with a reputable financial institution within the jurisdiction of this court and subject to the directions of the Honourable Court, pending the determination of this action.

Pleadings were filed, evidence led and issues joined by the parties. At the end of the trial the learned trial judge made some findings of fact. From page 2155A-2161 and Vol. 5 of the record, they are stated below: