An indigenous oil and gas company, Kaztec Engineering Limited, has asked the Abuja Division of the Court of Appeal to set aside the judgment of Justice Nkeonye Evelyn Maha of the Federal High Court Abuja, which struck out its suit against the Ministry of Petroleum Resources and five others on Oil Mining Leases (OMLs) 123, 124, 126 and 137.
Justice Maha had on December 15 struck out the suit numbered FHC/ABJ/CS/1291/2020, which also had the Attorney-General of the Federation; Mars Exploration and Production Company Ltd; the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Petroleum Company Limited (NNPCL) as respondents.
Dissatisfied, Kaztec Engineering, in its Notice of Appeal filed by its team of lawyers led by Jeph C. Njikonye (SAN), is praying the appellate court to allow the appeal and set aside the whole decision striking out the appellant’s suit/claims.
The appellant also urged the court to invoke Sections 15 and 16 of the Court of Appeal Act and assume jurisdiction to determine its Second Amended Originating Summons; and resolve issues 5 endorsed on the appellant’s Amended Originating Summons filed on March 22, 2023, in its favour.
The appellant argued that the trial court erred in law when it struck out its suit on the grounds of non-joinder of Salvic Petroleum Resources Ltd, stating that the law is trite that non-joinder of a party does not defeat the cause of action.
Njikonye argued that the joint award of the disputed OMLs to the appellant and Salvic Petroleum Resources Ltd was delineated to be on equity participation of Kaztec.
He urged the court to hold that Kaztec had a distinct cause of action against the respondents and to seek the reliefs sought.
Besides, Njikonye argued that the trial court erred in law when it held that the non-production of signature bonus payment evidence rendered the court incompetent to entertain the suit.
He stated that the lower court had in its rulings affirmed the appellant’s reasonable cause of action against the respondents, submitting that the appellant never sought any relief against Salvic Petroleum Resources Limited being not a necessary party for the determination of the appellant’s suit.
The SAN stated: “The appellant had locus standi to commence and maintain the action in its capacity, and the non-joinder of Salvic Petroleum Resources Ltd as a party could not have defeated the Appellant’s cause of action.”
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According to the appellant, the matter submitted to the lower court was for the interpretation of Section 2(1)(B); 12(1); Paragraph 35, Schedule 1 of the Petroleum Act; Letters of Award of Oil Mining Lease (OMLS) 123, 124, 126 and 137 dated March 30, 2021; April 7, 2021 and June 11, 2071 and a determination that the review of the award of the OMLs to the appellant in the circumstances of the case was wrongful.
He stated that the issue of payment of the signature bonus would not arise until the award to the appellant is restored.
The appellant argued that the competence and jurisdiction of the court to determine matters in dispute between persons, government or authority is regulated by the Constitution and relevant statutes.
He submitted that there was nothing in the provisions of the Petroleum Act, any other law or Section 251 of the 1999 Constitution as amended that made payment of signature bonus a condition precedent for the appellant to commence the suit in the circumstances of the action.
The lower court had issued an interim order directing the parties to the suit (including the Minister of Petroleum Resources and the NUPRC) to maintain the status quo concerning the said OMLs.
However, in the judgment of the court delivered last Friday, the court held that the Originating Summons was incompetent, having failed to join a necessary party (Salvic Petroleum) to the suit.
Consequently, the suit was struck out.“In effect, the appeal entered by Kaztec Engineering Ltd shall act as a stay of further action on the subject matter until the appeal is finally determined.