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Oil fields dispute: Petroleum minister, NUPRC, AGF pray court to dismiss companies’ suit – EnviroNews

Simon Osuji by Simon Osuji
January 26, 2026
in Technology
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Oil fields dispute: Petroleum minister, NUPRC, AGF pray court to dismiss companies’ suit – EnviroNews
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The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and his co-defendants, on Monday, January 26, 2026, urged the Federal High Court in Abuja to dismiss the suit challenging the proposed allocation of four oil fields.

The co-defendants include Attorney General of the Federation (AGF), Lateef Fagbemi, SAN, and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

The trio, in separate preliminary objections filed before Justice Emeka Nwite, submitted that the plaintiffs; Hi-Rev Oil Limited and Hi-Rev Exploration and Production Ltd, lacked the legal right to institute the matter.

Heineken LokpobiriHeineken Lokpobiri
Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil)

The 1st, 2nd and 3rd defendants in the suit, marked: FHC/ABJ/CS/2678/2025, are the minister, AGF and NUPRC.

Justice Nwite had, on Dec. 22, 2025, ordered the minister, the AGF and NUPRC to show cause why the reliefs of the plaintiffs in their motion ex-parte should not be granted.

The judge made the order after Unaeze moved the motion dated and filed on Dec. 11, 2025.

The oil and gas companies had sought an order of interim injunction restraining the defendants or whomsoever is acting on their behest from selling, assigning or allocating the Yorla South (Petroleum Prospecting Licence (PPL) 2A32 – OML 11) located in Rivers State.

The order is to also restrain the defendants from allocating Akiapiri (PPL 2A48 – OML 25) located in Bayelsa; Diebu Creek East (OML 32) also located in Bayelsa and Idiok (PPL 2A41 – OML 67) located in Akwa Ibom, “same being direct replacements for Utapate Oil Field (formerly part of OML 13) and OPL 2002, previously allocated to the plaintiff but was later withdrawn by the defendants, pending the hearing of the interlocutory application in this suit.”

The judge had, on Jan. 5, ordered all the parties to maintain status quo pending the hearing and determination of the case.

Justice Nwite gave the order after Mr. Ambrose Unaeze, who appeared for the plaintiffs; Hi-Rev Oil Limited and Hi-Rev Exploration and Production Ltd, moved an oral application to the effect.

The order followed Unaeze’s argument that the minister and NUPRC’s lawyers had just served on him their memorandum of conditional appearance, counter affidavit and preliminary objection and that he would need time to respond.

He said the order became necessary to refrain parties from taking any action that might affect the subject matter pending the hearing and determination of the case.

When the case was called on Monday, Unaeze informed the court that he had responded to preliminary objections served by all the defendants, prompting the judge to announce his decision to first address the issue of jurisdiction.

Moving his preliminary objection, Michael Numa, SAN, who appeared for the minister, argued that the court lacked jurisdiction since there was no specific “allocation” of oil fields to the plaintiffs.

Numa stated that the plaintiffs contended that the Federal Government had promised them additional oil fields beyond those allocated in 2002, but allocation is usually made through proper bid processes.

“Allocation must follow due procedures, and a party must meet technical and legal requirements before a specific allocation arises,” he submitted.

He further stressed that the Federal Government has statutory powers to allocate oil fields and that a promise alone does not create an enforceable right.

“Therefore, there is no reasonable cause of action in this case.

“And the court cannot create a legal right for the claimants because the process of allocation is always founded on statutory provisions meant to be protected by the court, not for the court to create one,” he said.

He added that the court cannot act on promises where no specific asset exists to ground the relief sought, particularly as one of the fields had already been assigned to another party.

Similarly, the AGF, represented by Oyinlola Kolawosho, in his preliminary objection filed on Jan. 5, asked the court to dismiss the case of the plaintiffs, describing it as “speculative.”

He claimed that the plaintiffs lacked locus standi (legal right) over the four oil fields since no agreement existed.

Also, the NUPRC, represented by O.M. Atoyeji, in its preliminary objection filed on Jan. 20, also urged the court to strike out the case.

Atoyeji argued that the promises relied upon by the plaintiffs did not automatically confer a legal right.

He also contended that the action was not filed within the statutory period prescribed by the Public Officers Protection Act and the Petroleum Industry Act (PIA), 2021.

Responding to the defendants’ objections, Unaeze said the plaintiffs had the right to court protection.

He stated that without the court compelling the defendants, the fields would be allocated to the public.

The lawyer said the parties had held several meetings with the defendants and paid substantial amount of money as promotion fees.

He said the plaintiffs had also been granted refineries and licences, but the government “now claimed they had no rights.”

“We are not saying your lordship should interpret the judgement or enforce the consent judgement they referred to; we are talking about the responsibility placed on them by that judgement,” he said.

Unaeze therefore urged the court to dimiss the defendants’ objections.

Responding, Numa disagrees with Unaeze, arguing that the signature bonus paid in 2002 predated the current statutory provisions of the PIA and that the original claim had been superseded by the settlement and consent judgement.

He said references to the out-of-court settlement could not form the basis of the current action.

The defence lawyers then Informed the court that third parties were already showing interest in the oil fields, hence, the need to know if the Jan. 5 order of status quo was still binding.

Justice Nwite responded that when a matter is before a court, parties are expected to refrain from any act that may affect the substance of the case.

The judge then adjourned the matter until April 20 for ruling on the preliminary objections.

By Taiye Agbaje

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