Nestoil, Neconde Sue FirstBank, Access, Zenith, Others Over $1.8bn Alleged Crude Output Loss

Nestoil and Neconde have initiated a $1.8 billion damages suit against FBN Quest, FBN Trustees, FirstBank, their receiver, Access Bank, Zenith Bank and other parties over what they described as the reckless and unlawful disruption of oil production.

The companies alleged that the actions of the banks and their receiver crippled operations, reducing crude oil production from 60,000 barrels per day to below 40,000 barrels per day and disrupting planned drilling activities involving the Pathfinder 500 Drilling Rig.

The suit comes as an attempt by FirstBank to have the ongoing case between FBN Quest Merchant Bank Limited, First Trustees Limited and Nestoil/Neconde reassigned reportedly failed, with the Chief Judge rejecting the application and relying on a Supreme Court judgment which found no basis for the reassignment.

According to the companies, the Supreme Court criticised attempts to stall the proceedings and described the actions as suggestive of ulterior motives and a misuse of judicial process.

Meanwhile, Drawcok Estate Limited has also filed a N100 billion lawsuit against FBNQuest Merchant Bank Limited, First Trustees Limited, Mr. Abubakar Sulu-Gambari (SAN) and the Deputy Sheriff of the Federal High Court, Lagos Division, over the alleged unlawful seizure of its property in Victoria Island, Lagos.

The company claimed its property was forcefully taken over and sealed despite not being a party to the underlying court proceedings or covered by the assets listed under the Common Terms Agreement.

Drawcok Estate is seeking restitution of its property, an injunction restraining further interference and N100 billion in damages for alleged losses and reputational damage arising from the incident.