A Rivers State High Court sitting in Port Harcourt has ruled in favor of BGP/CNPC International Nigeria Limited, ordering Belemaoil Producing Limited (Belemaoil) to pay $21,858,185.12 and N10,810,270,635.00.
BGP/CNPC, a Nigerian limited liability company, had sued Belemaoil over unpaid services rendered for a tripartite contract signed on February 4, 2019. The contract involved onshore and swamp seismic acquisition services for OML 55.
According to BGP/CNPC, they wrote several demand letters to Belemaoil, which were received without objection. Belemaoil had also given its bankers irrevocable payment instructions in favor of BGP/CNPC.
Despite this, Belemaoil failed to pay the debt, impacting BGP/CNPC’s business and financial obligations. BGP/CNPC initiated the suit through a summary judgment procedure, submitting 32 copies of invoices, demand letters, and meeting minutes.
Belemaoil admitted to engaging BGP/CNPC but claimed discrepancies in invoices and non-compliance with contract terms. They argued that payment was contingent upon the complete delivery of seismic products and data.
Justice G. Ollor ruled that Belemaoil failed to show a good defense to the claim. “It is a settled law that summary judgment procedure is for the plain and straightforward, not for the devious and crafty,” he stated.
“Accordingly, I hold from the above findings that the application of the claimant/applicant for summary judgment in this suit is meritorious and it is granted as prayed.”
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It is worth noting that the court ordered Belemaoil to pay the outstanding balance, plus 10% post-judgment interest per annum until final liquidation.
It bears mentioning that those close to the matter insist that this decision sends a strong message to companies that renege on their contractual responsibilities and the case’s outcome has significant implications for Nigeria’s energy industry, most of which remains to be seen.
