Lekoil Cayman Limited and Savannah Energy Investments Limited, a subsidiary of Savannah Energy PLC, have been criticised for flagrantly flouted an injunction granted by a Federal Court of Nigeria.
A statement by Lekoil Nigeria Limited asserted that ‘Lekoil Nigeria joined by a number of third-parties including Lekoil Oil & Gas Investments Limited, Mayfair Assets & Trust Limited, Lekoil 276 Limited and Lekoil Exploration & Production Nigeria Limited, were granted an injunction in the Federal High Court against Lekoil Limited and Savannah Energy Investments Limited restraining them from taking any steps in furtherance of the transfer of any interests in oil and gas assets of Lekoil Nigeria Limited and the transfer or creation of any interest in Lekoil Nigeria Limited, that will alter the ownership, equity or share capital structure of Lekoil Nigeria Limited.
‘Lekoil Nigeria sought the injunction further to the announcement of February 28, 2022 by Lekoil Cayman Limited that it had entered into an agreement with Savannah Energy Investments Limited, a subsidiary of Savannah Energy PLC.
‘Prior to the injunction, Lekoil Cayman and Savannah Energy had scheduled an Extraordinary General Meeting (EGM) to hold on Thursday, April 7, 2022. Rather than respect the rule of law, both companies had acted in defiance of the Nigerian court injunction by going ahead with the EGM as scheduled.
‘Lekoil Cayman proceeded with the EGM, where the following resolutions were allegedly arrived at:
- Approve the Option Agreement entered into with Savannah Energy Investments
- Authorise the Directors to issue fully paid ordinary shares up to an aggregate number of 151,755,547’
Chief Wole Olanipekun, SAN declined to speak on the matter, pointing out that it is sub judice, as the case is still pening before the Federal High Court, with a return date of June 1, 2022.
The Honourable Minister of State for Petroleum Resources, Mr Timipre Sylva, had in a letter stated that, “We are of the view that such significant change of shareholding, can only be carried out in close adherence with the Guidelines and Procedures for obtaining Consent to the Assignment of interest in Oil and Gas Assets dated 11th August, 2014, issued pursuant to the Powers of the Honourable Minister of Petroleum Resources under the Petroleum Act.
“Articles 3 & 4 of the Guidelines of Ministerial Consent set out the key elements of assignment of ownership and control of interests in Oil and Gas Assets and the requirements for securing Ministerial Consent.”
Chief Olanipekun said he agrees with this substantially, and that all illegal steps taken in violation of the subsisting court order would be addressed in court on the next adjourned date.
Lekoil Nigeria had gone further to urge the Board of Directors of the Company to act in the best interest of shareholders, by calling off the extraordinary general meeting slated for Thursday, 7 April, 2022 especially because upon the offer to acquire the Mayfair Loan, there would no longer be any commercial reason for Lekoil Cayman to consummate the Option Agreement with Savannah.
Some Lawyers expressed their surprise over the way their colleagues aid litigants to circumvent valid court orders, through weaknesses in the Nigerian justice delivery system.
Is contempt of court a crime in Nigeria?
That what has happened is contempt of court, pure and simple.
A Chairman of one of the NBA branches said: ‘Contempt ex facie curiae is a serious offence which interferes with the powers of the court to administer justice, and the court is entitled to invoke its innate powers to punish an erring party by committing the person to prison’.
Another senior also said: ‘Disobedience of court orders, undermines our justice delivery system. If allowed, especially in this case where a foreign company is a party, it undermines our judicial system and disrespect for the nation’s legal regime’ .
The court is expected to take many applications on the return date of June 1, including one setting aside all steps purportedly taken at the Extraordinary General Meeting, which held in clear violation of the court order.
