The Federal high court sitting in Lagos, south west Nigeria has adjourned till 28 of September,2022, when hearing will commence in a case of debt recovery of USD4,143,856.70 filed against Oriental Energy Resources Company by Borr International Operation drilling company,being an alleged outstanding approved and unpaid invoices for the drilling services rendered in accordance with Contract for the provision of Jack-Up Drilling Unit and Drilling Rig Services rendered in the Defendant’s Ebok Field in OML 67.
The drilling company in a suit filed by its lawyer, Barrister,Gabriel Uduafi is also praying the court for interest on US$ 4,143,856.70 million based on the current London Interbank Offered Rate (LIBOR), one month interest rate increased by 5 percent and calculated pro data on a daily basis from 6th October, 2021, till the date of liquidation of the judgement debt.
In its statement of claim, the Plaintiff stated that by the relevant provisions of the contract, the Drilling Operations, which the Plaintiff was engaged to carry out was required to be done within the Firm Term of 120 days.
It stated that going by the relevant provisions of the Contract, there was no fixed-or set target that the Plaintiff was obligated to achieve, as the Contract was not a turnkey but a day rate’ contract; and to this effect, Clauses and Schedule of the Contract explicitly set out the various rates to include Operating Rate, Standby Rate, Repair Rate, . Force Majeure Rate, Redrill Rate, Moving Rate and Zero Kate.
The plaintiff stated that the Lump Sum payments under the contract are the Mobilization cost of $450,000 and the
Demobilization cost of $250,000, a sum Which become due and payable upon the completion of the contract.
However,following the default in making payment as stipulated under the Contract, the plaintiff wrote to the Defendant both by mail and letters, demanding for the payment of the outstanding and approved invoices and that the Defendant wrote replies raising issues and points that are completely alien to the Contract as its reason for not making the payment.
The Plaintiff contended that in setting up a completely ridiculous claim, the Defendant claimed spread cost for nonproductive time (NPT) in the total sum of US$3,437,500.00 where there is no provision in the Contract to support such claim.
The Plaintiff added that following series of engagement , it was compelled to instruct its lawyers to issue a demand for the payment of the invoices, and by a letter dated 19th January, 2022 the Plaintiffs Solicitors delivered a formal demand for the payment of some of the outstanding invoices in the sum of US$2,533,749.12 net of taxes.
Rather than simply honour its payment obligation under the Contract and credit the Plaintiff with the value of the invoices, the Defendant caused its Solicitors to reply the Plaintiff’s formal demand by the letter dated 26th January, 2022 by which the Defendant now seeks to claim the sum of $10,511,754.00 as spread cost for non-productive time (NPT) and consequential loss, as against the sum of US$3,437,500.00 initially set up by the Defendant in its earlier engagement with the Plaintiff.
The plaintiff added that in accordance with the provisions of the Contract, the same came to completion on 10th October, 2021 when the Plaintiff’s Drilling Unit left the Defendant’s Ebok Field OML 67.
Plaintiff avers that by the Completion Date, the lump sum Demobilization Rate of US$250,000 became due and payable.
The reasons given by the Defendant in refusing to honour its payment obligation under the Contract are flimsy, frivolous, vexatious and ultra vires, the provisions of the Contract between the Parties, and having approved the invoices, the defendant is obligated to make the payment within the stipulated 30 days under the Contract.
Consequently,excuses given by the Defendant in failing to honour its contractual obligations to the Plaintiff are simply provocative, as same are not supported or derived from the Contract.
The Plaintiff is being denied of the payment due to it in respect of the services rendered to the Defendant
as a result of which the Defendant is indebted to the Plaintiff to the tune of US$4,143,856.70 as stipulated under Clause 11.2 of the Contract.
It will be in the interest of justice to grant all the reliefs claimed in this suit adding that except the Court intervenes and grant the reliefs sought, the Defendant will continue to default in the payment of the invoices which have been duly approved for payment by the Plaintiff.
In its defence, Oriental Energy Resources Limited stated that the company is not indebted to the Plaintiff in the manner alleged in it’s claim or in any manner whatsoever as the invoices upon which the alleged debt purportedly arose are disputed by the defendant.
The Defendant stated that the Plaintiff misled it into agreeing to the mobilisation of the drilling rig to commence the contract, by fraudulently misrepresenting to the Defendant that its drilling rig, Borr Natt, was suitable for the Defendant’s Drilling Programme.
In an affidavit deposed to by Abraham Faga, a Well Engineering Manager in the Defendant company, he stated that the Defendant is not indebted to the Plaintiff in the way and manner alleged in its claim or in any way and manner whatsoever as the Defendant is disputing the invoices upon which the purported debt arose.
He averred that without the Plaintiff’s fraudulent misrepresentations, the Defendant would never have commenced the contract and approved mobilisation of the drilling unit, hence the issue of Plaintiff’s invoices which were issued within the contract would never have arisen.
He added that the Defendant would, be claiming for a refund of all payments it has so far made to the Plaintiff as the payments were fraudulently obtained.
He claimed that due to the Plaintiff’s fraudulent misrepresentation, the purported execution of the contract was completely appalling with non-productive time of over 25 days attributed to rig related repairs which is unprecedented in the industry for drilling operations.
He stated that the Plaintiff hastily commenced this suit under undefended list to mislead the court into believing that the Defendant has no defence to its claims.
The deponent further stated that Justice will be better served if the Defendant is allowed to defend the suit.
He urged the court to transfer the suit to Ordinary Cause List for a complete and holistic determination of all issues in controversy.
Breaking: PDP induces people to impersonate political parties, plans press conference.
Concerned citizens in Ogun state on Friday raised an alarm over the inducement of some buyable politicians by PDP governorship candidate, Hon. Ladi Adebutu.
The insider source revealed that Adebutu, who lost out in the governorship election of last Saturday, has slated a press conference where some people will impersonate the executives of the Ogun State Chapter of Inter-Party Advisory Council (IPAC) along with few politicians claiming to be Chairmen of registered political parties, with a promise of N2 million naira each.
The press conference slated for Park Inn Abeokuta, owned by Ladi Adebutu’s father will hold any moment from now.
According to the insider source, “Ladi and his party know they cannot win at the Tribunal because they are quoting a wrong section of the Electoral Act 2022, while ignoring the relevant and applicable section of the law. That is why they are bent on inciting and inducing the public instead of going to the Tribunal”
Wema Bank Organises Financial Literacy Programme for Students to mark 2023 Global Financial Literacy Day
Wema Bank Plc, Nigeria’s leading Innovative Financial Institution is championing financial literacy for the next generation by participating in the Global Money Week to commemorate the Financial Literacy Day on March 23, 2023.
In alignment with the theme “Plan your Money, plant your Future”, Wema Bank organized financial literacy sessions for secondary school students across all states where the Bank is represented. This is to instill an early understanding of the significance of building a solid financial foundation and achieving financial stability and success from a young age.
The Deputy Managing Director of Wema Bank, Mr. Wole Akinleye, led the Financial Literacy Session at Yola Model School, Adamawa State. The students were trained on personal finance topics such as budgeting, emergency funds, saving for goal actualization, investment, donating for positive societal impact amongst others. He further encouraged the students on the importance of developing financial literacy as a life skill.
Speaking on the significance of Financial Literacy Week, Mr. Akinleye emphasized Wema Bank’s commitment to empowering young minds with the skills and knowledge necessary to make informed financial decisions. In his words, “Our hope is that through these initiatives, we can empower more individuals to take control of their finances and achieve financial stability.”
Financial literacy is vital for the achievement of financial stability, and it is essential to ensure that everyone has the necessary tools to manage their finances effectively and achieve their financial goals. Wema Bank Plc is committed to providing educational resources and opportunities for children through the Royal Kiddies Account and a range of other savings products, supporting financial empowerment for the next generation.
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