Shell Petroleum Trial: Court Gives FBN, UBA, Trial Date in Camera

 Justice Oluremi Oguntoyinbo, Federal High Court in Lagos, has fixed Tuesday, April 13, to hear a contempt application against First Bank of Nigeria (FBN), United Bank for Africa (UBA), and Citi Bank Limited, for disregarding her order made on January 25, 2021.

The judge had fixed the date for the hearing of contempt application against the banks and other applications, when the matter came up for hearing on March 9.

The court had ordered the appearance of officials of First Bank of Nigeria, FBN United Bank for Africa, UBA, and Citi Bank Limited, for disregarding her order made on January 25, 2021.

In a ruling earlier, the court had directed all banks in Nigeria to freeze Shell Petroleum Development Company Limited (SPDC) and it’s subsidiaries bank accounts, while granting a Mareva injunction filed against Shell Petroleum by an indigenous oil firm, Aiteo Eastern E&P Company Limited.

The order was sequel to AITEO’s bid to recover from Shell Petroleum, the cash equivalent of more than 16 million barrels of crude oil allegedly diverted by the oil giant.

While 17 banks complied with the orders, the alleged contemnors, First Bank of Nigeria, FBN United Bank for Africa, UBA, and Citi Bank Limited were said to have disregarded the order.

Consequently, Aiteo’s Counsel, Mr. Kemi Pinheiro, Senior Advocates of Nigeria (SAN) filed a Contempt application against the contemnors.

Upon hearing all processes in the Contempt application, Justice Oguntoyinbo ordered the officials of the alleged contemnor banks, to appear before the court, to defend themselves against the allegations.

The banks’ Officials ordered by the court are: Citi Bank’s Company Secretary Sola Fagbure and Chief Financial Officer, Sharaf Mohammed; Irene Netimah and Patrick Iyamabo; both First bank’s Chief Financial Officer and Company Secretary and UBA Plc’s Company Secretary, Bill Andrew Odum, and Chief Financial Officer, Ebenezer Kolawole.

Justice Oguntoyinbo had also ordered that failure of the alleged contemnors to be in court yesterday, a warrant of arrest shall be issued against them.

The judge further ruled that the presence of the named bank officials was necessary.

Apart from summoning the banks’ officials for contempt, the judge also declined to vacate its interim Mareva injunction directing 20 banks to freeze Shell Petroleum Development Company of Nigeria (SPDC) and its subsidiaries’ bank accounts.

However, at the resumed hearing of the matter yesterday, none of the alleged contempnors were in court.

Consequently, the matter was adjourned till April 13, for further hearing.

Aiteo in a suit marked FHC/L/CS/52/2021, is claiming about $2.7 billion against Shell Petroleum over alleged problems with the Nembe Creek Trunk Line (NCTL) pipeline it bought from the Anglo-Dutch group in 2015 and over claims that Shell undercounted its oil exports.

SPDC’s subsidiaries joined as respondents in the suit are Royal Dutch Shell Plc; Shell Western Supply and Trading Limited; Shell International Trading and Shipping Company Limited; and Shell Nigeria Exploration and Production Company Limited.