A Federal High Court sitting in Port Harcourt has reaffirmed a landmark judgment in Suit No. FHC/PH/CS/136/2022 between Cutra International Limited v China National Petroleum Corporation, upholding the award of $100 million in favour of Cutra International Limited (“Cutra”) against China National Petroleum Corporation (“CNPC”).
The decision brings renewed attention to one of the most significant commercial disputes to come before the Nigerian courts in recent years.
In a ruling delivered on 24 April 2026, the Federal High Court dismissed an application filed by CNPC seeking to set aside the judgment earlier entered against it on 23 May 2025. The application to overturn the judgment was filed on 28 October 2025, but the Court found no basis to disturb its previous judgment, thereby affirming the full judgment sum awarded to Cutra.
The dispute centred on the ownership structure and equity participation under an Oil Prospecting Licence (OPL 471) awarded by the Nigerian Federal Government in 2006/2007 to CNPC and its local partner, Cutra. Under the award and arrangement between the parties, Cutra held a 10% equity interest in the OPL. However, CNPC unilaterally returned the OPL to the Federal Government of Nigeria without consulting or obtaining Cutra’s consent.
Aggrieved by the action, Cutra approached the court seeking damages for the deprivation of the benefits and entitlements from the oil asset. The court in its earlier judgment found in favour of Cutra. In assessing the appropriate damages and compensation payable to Cutra, the Court observed that Cutra’s evidence that the minimum yield from the OPL was valued at $5 billion was not challenged by CNPC.
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Relying on the uncontroverted evidence before it, the Court consequently awarded damages of $100 million in favour of Cutra.
The ruling sends a strong signal about the judiciary’s approach to post-judgment applications seeking to reopen concluded matters without compelling legal justification.
According to the court, “when a Court takes a position on a matter in controversy before it, that Court becomes functus officio with respect to that matter in controversy, and the Court stands and remains bound by the decision. It is equally the position of the law that where a trial Court in the course of the proceedings in a matter before it decides on a particular issue or question, it becomes functus officio to revisit that issue or question”.
The development marks a major legal victory for Cutra International Limited. It reinforces the authority of the Nigerian Federal High Court in the determination and enforcement of high-value commercial claims involving foreign corporate entities.
Industry observers expect that attention may now shift toward the enforcement phase of the judgment, particularly given the international dimensions of the dispute and the substantial financial implications arising from the Court’s decision.
The ruling is anticipated to generate significant discussion within legal, financial, and commercial circles, where large-scale cross-border disputes often raise complex questions relating to jurisdiction, contractual obligations, and the enforcement of judgments against foreign companies.
