Rivers Court orders Belemaoil to pay $21.85m, N10.81bn over unpaid contractual services

A Rivers State High Court in Port Harcourt has mandated Belemaoil Producing Limited (Belemaoil) to pay $21.858 million and N10.81 billion to BGP/CNPC International Nigeria Limited for outstanding payments related to services rendered.

BGP/CNPC, a Nigerian-incorporated company, had filed suit No. PHC/3442/S/2022 against Belemaoil, claiming they had a tripartite agreement (Contract No. BPL055017-00063) signed on February 4, 2019, to provide onshore and swamp seismic acquisition services for OML 55 from April 24, 2018, to April 23, 2021. Despite fulfilling their contractual obligations, BGP/CNPC alleged that Belemaoil failed to pay, despite multiple demand letters.

BGP/CNPC further stated that Belemaoil had even issued irrevocable payment instructions to its bankers, Sterling Bank Plc and Access Bank Plc, to pay 90% of its anticipated cash call from its senior partner NAPIMS. However, payments were not made, which led the firm to initiate legal action, providing various evidence including 32 invoices and other documents.

In defense, Belemaoil acknowledged engaging BGP/CNPC but cited discrepancies in the invoices and insisted that outstanding payments could not be completed due to BGP/CNPC’s non-compliance with contract terms. They argued that BGP/CNPC failed to deliver essential seismic data, which was a prerequisite for payment, and thus requested the court to dismiss the summary judgment.

Justice G. Ollor, after reviewing the evidence, ruled in favor of BGP/CNPC, noting that Belemaoil had admitted its indebtedness during various meetings and did not provide substantial evidence disputing the debt.

The court, therefore, ordered Belemaoil to make the payments as claimed.

The court held: “It is a settled law that summary judgment procedure is for the plain and straight forward, not for the devious and crafty. I find that the instant suit is plain and straight forward and this application for summary judgment by the claimant/applicant is apt, because the defendant/respondent has no good defence to this suit of the claimant/applicant.

“Accordingly, I hold from the above findings that the application of the claimant/applicant for summary judgment in this suit is meritorious and it is granted as prayed.”

The court, therefore ordered Belemaoil to pay to BGP/CNPC, the sum of N10,810,270,635.00, and $21, 858,185.12, being the balance outstanding of the invoices issued by BGP/CNPC to Belemaoil for work done.

The court also ordered Belemaoil to pay post judgment interest at the rate of 10 percent per annum from the date of judgment until final liquidation of the judgment, while setting down the claims with regard to cost of action and pre-judgment interest for full trial.