Malabu Oil Asks Court to Nullify House Resolution on OPL 245

Tobi Soniyi 
Malabu Oil and Gas Limited has asked a Federal High Court in Abuja to set aside the resolution of the House of Representatives which directed the federal government to cancel the Oil Prospecting Licence (OPL) 245 transaction in which the company is involved.

The company, which was represented in court yesterday by Chief Femi Fasawe,  is also asking the court to set aside the resolution on the grounds that the House of Representatives lacked the power to determine the ownership structure of the OPL 245 deal, as it did in the said resolution.

Following a petition, the House investigated the circumstances surrounding the dispute over the disposition of  OPL 245 which involved the company, the federal government, Shell Nigeria Exploration, Production Company Limited and Nigeria Agip Exploration Limited.

Malabu, through its counsel, Mr. M. A Mogaji (SAN), in its suit filed on April 17, 2014, argued that the House of Representatives’ resolution on its (Malabu’s) ownership structure was illegal and unconstitutional.

It argued that it was only a court of law that was empowered by the constitution to determine the ownership structure of a company.

It therefore asked the court to declare that “the decision and determination” of the House of Representatives was unconstitutional because it amounted to “a piece of legislative judgment and a usurpation of the powers of the judiciary under section 6 of the 1999 Constitution.”

Malabu also asked the court  to declare that not withstanding sections 88 and 89 of the constitution, the House of Representatives did not have the powers to pass any resolution interpreting, canceling and/or deciding legality or otherwise of the contractual agreements between the parties in the transaction.

It sought  “an order setting aside the decision, determination and/or purported resolution HR. 111 of the House of Representatives of Tuesday, February 18, 2014” and another order of perpetual injunction from further interfering in the transaction illegally.

The plaintiff is also asking the court to award N2bn as damages against the House of Representatives and other defendants in the suit “for the stress and the psychological trauma” it allegedly underwent because of the defendants’
“unlawful interference” in the deal.

Listed as defendants are: the House of Representatives; the Speaker, Hon. Aminu Tambuawal, and the Clerk of the House of Representatives.

Other defendants are the chairman of the House of Representatives ad hoc committee which investigated the OPL 245 deal, Mr. Leo Ogor, and the Attorney-General of the Federation, Mr. Mohammed Adoke.

The case could not go on yesterday because two lawyers announced appearances for Malabu Oil.
Justice Ahmed Mohammed adjourned the matter to July 8th to enable the plaintiff resolve the dispute over representation.

Papers filed in court showed that based on the report of the Mr. Leo Ogor-led ad hoc committee, the House of Representatives on February 18, 2014, among other resolutions, gave 50 per cent shareholding of Malabu to Mohammed Abacha, a son of the late former Head of State, Genral Sani Abacha.

The House of Representatives was also said to have, in the said resolution, declared 30 per cent shares of the company for Kekwu Amafegba (Dan Etete) and the remaining 20 per cent for Pecos Energy Ltd.

The House was also said to have directed the federal government to cancel the OPL 245 transaction.