Business

GHL: We Rescued First Bank From the Abyss, We Won’t Throw Out The Baby With The Bathwater

General Hydrocarbons Limited (GHL), operators of OML 120, Deep Offshore Nigeria, has reaffirmed its commitment to resolving its ongoing dispute with First Bank of Nigeria Limited (FBN), citing the remarkable successes achieved through their collaboration.  

In a statement issued on Friday by the Chairman of the Board of GHL, Nduka Obaigbena, the company emphasised its role in saving First Bank from financial distress while simultaneously discovering crude oil “to the glory of Nigeria”.  

“We willingly rescued First Bank of Nigeria Limited (FBN) from the abyss and are not about to throw away the baby with the bathwater. Through our collaboration, we have resolved FBN’s financial challenges and discovered crude oil to the glory of Nigeria,” the statement read.  

The partnership, which began under a Subrogation Agreement, allowed GHL to assist in financing FBN’s operations and addressing its Non-Performing Loans (NPLs). This effort, GHL noted, restored FBN to profitability and laid the groundwork for the exploration and development of OML 120.  

However, GHL accused FBN of breaching its obligations under the Subrogation and Tripartite Agreements, resulting in a legal dispute that is currently being addressed through court proceedings and arbitration. Despite a court judgment in GHL’s favour, the company alleged that FBN continues to disregard the ruling.  

GHL reassured its stakeholders that the company remains financially strong and committed to its operations. It highlighted its achievements in discovering oil and gas reserves, crediting Nigerian-born engineers and global technical partners such as Schlumberger (SLB), Baker Hughes, and Century Group for their contributions.  

The statement read, “We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination. We hope for a favourable outcome under our system of justice. Unfortunately, First Bank continues to disregard and disobey a subsisting court judgment in favour of GHL and instead has chosen to mislead the public. Our lawyers are addressing this flagrant breach in the right forum. There is no cause for alarm.

“As a going concern and as the one and only wholly-owned Nigeria company in Deep Offshore Nigeria (75KM at Sea and over 850-1000 meters water depth), our oil and gas campaign has discovered Oil and Gas to the glory of Nigeria, thanks to the ingenuity of our Nigerian-born engineers and technical partners including Messrs Schlumberger (SLB), Baker Hughes, Century Group, etc.

“With its strong assets base, GHL is in goodstanding to meet any obligation that may fall due. We call on our valued partners to remain calm as we work through the courts, arbitration or mediation to seek solutions to our differences in strategy, not in form or substance.”

GHL expressed confidence in Nigeria’s legal system to resolve the matter fairly. “We believe that justice and reason will prevail, sooner or later,” the statement added.  

The company also underscored the importance of its collaboration with FBN, describing the partnership as pivotal to addressing systemic financial risks while advancing Nigeria’s oil and gas sector.

Ozioma Samuel-Ugwuezi

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Ozioma Samuel-Ugwuezi

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