Business
Honeywell Awarded N72.2bn Damages Against Ecobank
Honeywell Flour Mills Plc has won N72.2 billion in damages against Ecobank Nigeria.
A Federal High Court (FHC), Lagos, presided over by Justice Mohammed Liman, entered the ruling on Tuesday.
The judgment came as part of efforts to resolve a longstanding legal tussle between the flour millers and the lender.
Both parties have been embroiled in protracted legal battles founded on several allegations and counterclaims.
The protracted legal battle kicked off in November 2015 when Ecobank obtained ex-parte order from the FHC to freeze Honeywell Flour Mills’ assets, including all its bank accounts.
The company claimed that the order almost crippled their businesses, as they were financially incapacitated from fulfilling their obligations to stakeholders.
They were unable to pay suppliers, process Letters of Credit, and collect payment from distributors, thus endangering the livelihood of over 2,000 employees and causing significant reputational and operational damage.
After weeks of struggling to run a business without access to their bank accounts, Honeywell Flour Mills applied for discharge of the orders, with the court varying the asset freezing ex-parte orders and allowing the company limited access to its accounts.
In March 2016, a Court of Appeal (CA) overruled the ex-parte order to restore Honeywell Flour Mills’ right to operate its accounts without any restrictions, stating that Ecobank’s application to freeze the assets should not have been allowed to stand.
Consequently, in an appeal against the judgment, Ecobank asked the Supreme Court (SC) to overturn the Court of Appeal’s (CA) ruling.
However, the SC upheld the appellate court’s decision that an ex-parte injunction was not permitted to be filed in a winding-up petition.
Following the SC’s upholding of the CA’s judgment, Honeywell Flour Mills demanded that Ecobank fulfill its undertaking to compensate the company for the loss suffered due to the ex-parte order, which has turned baseless.
The company sought damages in excess of N72bn against Ecobank.
In his arguments, Honeywell Flour Mills’ lead counsel, Bode Olanipekun, argued that the SC determined that the ex parte orders obtained by the bank against the plaintiff were improper, and once a court makes a finding is made that an application is improper then that application is frivolous.
On his part, Ecobank’s legal counsel, Kunle Ogunba, argued that in its undertaking, it gave a condition that “if HFMP suffers any damage, it should send a notification to the registrar of the court, who will then inform the bank”.
The bank is insisting that the above condition was not carried out, which meant that HFMP would not entitled to damages.
The FHC, however, having carefully the evidence adduced before it and listening to the deliberations, reached a decision in favour of Honeywell Flour Mills.
Consequently, the court granted the four reliefs sought by the flour miller, which amounted to N72.2bn.
Business
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.
The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.
Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.
According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.
ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months
The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.
Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.
She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.
The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.
The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.
Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.
Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.
The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.
It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.
Business
FHC Orders NUPRC to Comply with PIA
Business
Local Firms Lead Revival of Idle Oil Wells – SPE
Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.
The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.
According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.
“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.
He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.
The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.
“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”
He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.
He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.
“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”
ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products
Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.
According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.
He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.
“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”
Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.
“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”





