In the face of Nigeria’s ongoing economic struggles, Prime Exploration and Production Limited is at risk of closure following a ruling by the Federal High Court in Lagos.
The court granted an interlocutory injunction that freezes the company’s accounts, as part of a legal action initiated by Well Fluids Limited over alleged long-standing unpaid debts.
Justice A. Lewis-Allagoa issued the ruling, which also affects 19 other entities, barring them from making withdrawals from accounts tied to the petitioner.
Among the entities named are 16 commercial banks, the Central Bank of Nigeria (CBN), the Nigerian Interbank Settlement System (NISS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The court order prevents Prime Exploration from using, transferring, or placing liens on its assets, including its stake in the Asaramatoru Marginal Field within OML 11.
Furthermore, the NUPRC is prohibited from approving any transactions involving these assets.
The injunction states that Prime Exploration and its affiliates cannot seek approval from partners or the NUPRC for any such asset disposals, including those related to the Asaramatoru Marginal Field or any other petroleum assets until the case is resolved.
The court also directed that any withdrawals from Prime Exploration’s accounts—particularly for paying staff salaries and other operational expenses—must be authorized in writing by the petitioner until the hearing concludes or further court orders are issued.
Additionally, the court granted an order preventing any enforcement of judgments or security against Prime Exploration’s assets, including the Asaramatoru Marginal Field, and restrained the company’s officers, directors, and shareholders from altering, hiding, or damaging any of its records.
The status quo must be preserved about the company’s assets until the petition is heard and resolved.
The legal action taken by Well Fluids is aimed at ultimately winding down the operations of Prime Exploration and Production Limited.
In a further development, the court also authorized the publication of details regarding the injunction, allowing the petitioner to make the freezing of Prime Exploration’s accounts publicly known.
The court also instructed that the petition be advertised in two major daily newspapers and the Official Gazette of the Federal Government, with further proceedings to follow at a later date.