JUST-IN: Court Orders Belemaoil to Pay $21.86 Million and ₦10.81 Billion to BGP/CNPC for Unpaid Contract Services

A Rivers State High Court sitting in Port Harcourt has ruled that Belemaoil Producing Limited (Belemaoil) must pay the sum of $21.858 million and an additional ₦10.81 billion to BGP/CNPC International Nigeria Limited as unpaid balances for services rendered under a contract.

BGP/CNPC, a limited liability company incorporated in Nigeria, filed suit No. PHC/3442/S/2022 against Belemaoil, stating that by a tripartite contract (No. BPL055017-00063) signed on February 4, 2019, they were contracted to provide onshore and swamp seismic acquisition services for OML 55. The contract was to last three years, from April 24, 2018, to April 23, 2021.

BGP/CNPC claimed it sent multiple demand letters to Belemaoil, which were received but left unanswered. Belemaoil had allegedly provided irrevocable payment instructions to its bankers, Sterling Bank Plc and Access Bank Plc, in favor of BGP/CNPC and its co-contractor for payment of 90 percent of its anticipated cash inflow from NAPIMS, its senior partner, but no payments were made.

The firm argued that despite repeated demands, Belemaoil failed to pay the debt, negatively affecting their business and financial obligations. This led to BGP/CNPC filing a summary judgment procedure, presenting 32 copies of invoices, letters of demand, meeting minutes, and other documents to support its claims.

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In its defense, Belemaoil acknowledged that BGP/CNPC had been contracted and received some invoices. However, it pointed out discrepancies in the amounts, leading to several reconciliation meetings. Belemaoil stated that the total sum of invoices submitted by BGP/CNPC amounted to $28,008,170.07 and ₦6,413,890,343.91. Out of this, Belemaoil paid $7,578,365.67 and ₦1,768,718,772.48. They argued that the remaining invoices—$22,358,185.12 and ₦5,053,732,656.30—could not be settled because BGP/CNPC did not comply with the contract terms, specifically failing to release data on the work done.

Belemaoil contended that none of the submitted invoices had certificates of job completion, and therefore, BGP/CNPC was not entitled to payment until all seismic products and related deliverables were handed over. Belemaoil urged the court to dismiss BGP/CNPC’s application for summary judgment.

However, Justice G. Ollor ruled that Belemaoil did not have a valid defense against the claim, noting that all documents and meetings indicated Belemaoil’s acknowledgment of its debt to BGP/CNPC. The judge stated, “It is a settled law that summary judgment procedure is for the plain and straight forward, not for the devious and crafty. I find that the instant suit is plain and straight forward and this application for summary judgment by the claimant/applicant is apt, because the defendant/respondent has no good defense to this suit of the claimant/applicant.”

The court ruled in favor of BGP/CNPC, ordering Belemaoil to pay ₦10,810,270,635.00 and $21,858,185.12 for services rendered. Additionally, Belemaoil must pay post-judgment interest at a rate of 10 percent per annum until the full judgment amount is settled. The court deferred the matters of cost of action and pre-judgment interest to a full trial.