Abuja court dismisses Hi-Rev oil firms' suit over field allocation for missing legal procedure
The Federal High Court in Abuja on Monday dismissed a lawsuit filed by Hi-Rev Oil Limited and Hi-Rev Exploration and Production Limited challenging the allocation of four oil fields. The plaintiffs had sought to stop the government from allocating Yorla South field (PPL 2A32-OML 11), Akiapiri oil field (PPL 2A48-OML 25) in Bayelsa, Diebu Creek East (OML 32) in Bayelsa, and Idiok field (PPL 2A41-OML 67) in Akwa Ibom.
Judge Emeka Nwite ruled the suit "incompetent" because the companies failed to serve a valid pre-action notice on the relevant government institutions as required by Section 308 of the Petroleum Industry Act 2021. The judge held this procedural failure deprived the court of jurisdiction, making any proceedings a nullity. He also agreed with the petroleum minister that plaintiffs failed to disclose a reasonable cause of action, noting the allocation process follows statutory bidding procedures, not mere government promises.
The suit was filed on December 11, 2024, with the judge initially ordering defendants to show cause on December 22, 2024. Defendants—including Lokpobiri, Attorney-General Fagbemi, and NUPRC—argued plaintiffs lacked legal right since no specific allocation existed to them and they relied only on alleged government promises. The ruling ends the case, reinforcing that companies must follow proper legal procedures when challenging oil field allocations in Nigeria.