This Day (Lagos)

Nigeria: Oil Block - FG Appeals Judgment

Abuja — Federal Government yesterday brought before a Federal High court sitting in Abuja a motion for a stay of execution stating reasons why it has not complied with the judgment delivered by the former Chief Judge of the court, Justice Abdullahi Mustafa, which nullified the revocation of OPLs 321 and 323, two oil exploration licences said to belong to South Korean consortium by the Umaru Musa Yar'Adua-led government.

The Federal Government wants an order restraining the judgment creditor from having access to the OPLs 321 and 323, pending the determination of its appeal at the appellate court.

While waiting for the determination of the motion, the Federal Governmnet is also making moves to appeal the judgment at the Court of Appeal.

Retired Justice Mustapha had on August 20, 2009 held that the decision by the government of President Yar'Adua to revoke the two oil exploration licences of the foreign consortium was illegal, unconstitutional, indefensible and unreasonable.

The motion which was the only case before the acting Chief Justice, Justice Daniel Abutu, yesterday, could not head as he fixed October 23 for the hearing of the motion.

The two oil licences in dispute were issued by former President Olusegun Obasanjo following the oil and gas bid round conducted in 2005.

The Federal Government is appealing the judgment on 12 grounds and the appeal was filed by its counsel, A.O Mbamali.

Retired Justice Mustafa who voided the revocation of the oil licences had held that President Umaru Musa Yar'Adua lacked the legal powers to revoke oil exploration licences issued the consortium, especially since he was not the nation's oil minister. Part of the appeal however said the retired judge erred in law in his judgment.

Federal government also averred that the judgment was not weighty of evidence.The court had also quashed the decision of President Yar'Ádua to revoke the oil prospecting licence of the Korean National Oil Company (KNOC), saying the action was illegal and unconstitutional.

The court presided over by the Chief Justice of the Court, Justice Mustapha Abdullahi , said the plaintiffs, including KNOC Nigerian East Oil Company Limited, KNOC Nigerian West Oil Company Limited, Tulip Energy Resources Nigeria Limited and NJ Exploration Limited are entitled to the OPL 321 and 323 and that the president, acting through the Minister of state for Petroleum, had acted ultra vires in the contact.

Justice Abudullahi held that the president has no power to void the allocation of OPL 321 and 323 belonging to the applicants in the manner it was done through the minister of state for petroleum.


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