A Federal High Court in Yenagoa has adjourned indefinitely a suit by Nembe communities, hosts to Oil Mining Lease (OML 29) against Aiteo Exploration and Production Limited.

Justice Abimbola Awogboro suspended the hearing, pending a Court of Appeal ruling in an interlocutory appeal in the substantive suit.

Ms. Awogboro had, on March 3, 2020, declined to stay proceedings in the ongoing litigation by the communities over the adverse impact of oil exploration.

Mrs. Awogboro had joined Aiteo Eastern Exploration Limited and other adjourning communities in the suit but declined an application to strike out Aiteo Exploration and Production Company from the suit.

The judge maintained that she could not stay proceeding because the appeal was merely a subsidiary issue and had no bearing with the major substance before her, noting that she would allow the appellate court to rule before proceeding on the case.

She explained that the adjournment was to see if the appellate court will grant an order on the appeal before it asking that Aiteo be excluded from the suit.

The Nembe communities in Bayelsa had filed the suit against Aiteo, but another firm, Aiteo Eastern Exploration, and Exploration Company approached the court to be joined as the holder of the OML 29 lease.

Aiteo Exploration and Exploration had approached the court of Appeal in Port Harcourt and applied to the Federal High Court to stay proceedings pending the appeal’s determination.

Earlier, counsel to the communities, Ezekiel Ikoli, told the court that given the court’s decision to suspend the hearing pending the interlocutory appeal’s outcome, there was a need for an adjournment since there was no update from the appellate court.

Mike Ozekhome (SAN), Aiteo’s counsel, urged the court to adjourn the matter indefinitely since a superior court was already hearing an appeal on the case.

On June 24, 2019, the court declined an application to halt the renewal of OML 29 pending the determination of a suit by Nembe communities in Bayelsa.

The OML 29 host communities seek an environmental audit of the impact of the oil field on the host communities and the implementation of the host communities’ social obligations by the oil block operator, amongst others.

The lease expired on June 30, 2020, while the operator of the oilfields had commenced renewal formalities with the payment of $82 million to the Department of Petroleum Resources.

The plaintiffs are Ikaonaworio Eferebo-Igoma, Iyerite Chiefson Awululu-Atubu, Ayebaesin Edoghotu-Omoh, Markson Amaegbe-Orutari, B.C. Benwari-Yousuo and Doibo Evans, representing OML 29 host communities.

The defendants are the Attorney-General of the Federation, Minister of Petroleum Resources, Federal Ministry of Environment, and Shell Petroleum Development Company of Nigeria.

Others are Aiteo Exploration and Production Ltd, Attorney-General of Bayelsa and the Deeds Registrar, Bayelsa Ministry of Lands.

Shell Petroleum Development Company in 2015 divested its equity in OML 29 and transferred its interest in the oil block, including the 97km Nembe Creek Trunk Line for $2.4 billion to Aiteo.

However, the host community said the divestment was done “without resolving the untold negative impact of their operations on the people.” 

(NAN)