A Port Harcourt High Court has dismissed a N5.74 billion breach-of-contract suit filed by Macobarb International Limited against the Nigeria LNG (NLNG) Limited.
The judge, Justice Chinwendu Nwogu, ruled in favour of the gas giant, rejecting all claims by Macobarb in a judgment delivered on Wednesday in the case with suit number PHC/2013/CS/2022, centered on an alleged breach of terms in a contract awarded to Macobarb for access control works at the NLNG plant on Bonny Island, Rivers State.
Recall that Macobarb International Limited, an indigenous contractor, had dragged the NLNG to court claiming over N1Bn (later amended to N5.74 billion) for alleged breaches to a contract (B130142PPI, Access Control) in the NLNG plant area with three years duration.
Justice Nwogu had ruled that the NLNG did not breach its contract with the contractor and that the gas company did not unlawfully deny Macobarb payments.
The judge said work executed by Macobarb did not amount to ‘work done’ as stated in the contract terms except the NLNG approved it as so, and that the provision mandating the person recognized as contract holder nominated by the NLNG as the one to authorize any dealings with the contractor did not mean that he alone could act for the NLNG as relied upon by the contractor.
The judge ruled that the contract holder was a mere day-to-day overseer of the project, and that any official mandated by the NLNG can terminate the contract.
The judge also ruled that the contract did not provide for stand down payment and that the NLNG did not cause delays in the execution of the contract as claimed by the contractor.
The judge also ruled that the payment failures by the NLNG that the contractor claimed affected the contract did not amount to an offence or breach of the contract but that the contractor misused the loan he obtained from banks.
In the end, the judge ruled in favour of all the grounds submitted by the NLNG and none on the grounds by the contractor, and even tongue-lashed the contractor in most of his rulings.
Reacting to the ruling, Mr Shedrack Ogboru, the chief executive of Macobarb, decried the ruling and its ripple effect for indigenous contractors seeking justice against international oil companies (IOCs) in Nigerian courts.
Mr Ogboru said he felt he presented tight case to the court to show that the NLNG breached terms of payments and that the breaches caused slowdown of the execution of the contract, but regretted that the judge did not agree with any of his arguments.
According to him, many indigenous contractors have died as a result of injustices in the hands of the oil majors, noting that it was only in abroad do communities and local contractors get some form of justice, never in Nigeria.
“My case is presented 100 per cent, the NLNG’s case is zero; but surprisingly, the NLNG has rather been upheld, and Macobarb denied. I pity indigenous contractors in Nigerian courts. We are doomed,” he quipped.