Court Rules Bayelsa Oil Company’s Legal Action Against Halkin Exploration Is Statute-Barred

The Federal High Court of Nigeria, sitting in Yenagoa, Bayelsa State, presided by Hon. Justice Ayo Emmanuel, has delivered a consolidated ruling in Suit No. FHC/YNG/CS/223/2024 on February 24, 2025.

The court dismissed Bayelsa Oil Company Limited’s suit against Ebikabowei Charles Dorgu and six others, affirming Halkin Exploration and Production Limited as the rightful holder of the oil mining license for the Atala Marginal Field (OML 46).

In its suit filed on June 20, 2024, Bayelsa Oil Company sought to have the award of the Atala Marginal Field to Halkin Exploration and Production Limited declared unlawful and void, along with the restoration of its rights over the field. The company sought 15 other reliefs in the suit.

However, the court upheld three preliminary objections filed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Halkin Exploration and Production Limited, and Halkin Global Investment Limited. The objections challenged the court’s jurisdiction over the matter, and Justice Emmanuel found them to be meritorious. The court ruled that Bayelsa Oil Company’s suit was statute-barred under the Petroleum Industry Act (PIA) and the Public Officers Protection Act (POPA), which mandates that actions such as this should be initiated within three months of the cause of action arising.

Bayelsa Oil Company’s cause of action was determined to have arisen on April 6, 2020, when its interest in the Atala Marginal Field was revoked, and again on July 7, 2021, when the field was awarded to Halkin Exploration. As a result, the court declined jurisdiction to hear the case.

Additionally, the court noted that Bayelsa Oil Company failed to comply with the provisions of the Petroleum Act of 1969, which required that disputes be submitted to an arbitration panel before resorting to the Federal High Court. This non-compliance further contributed to the dismissal of the case.

The court also observed that Bayelsa Oil Company had opted for an administrative review by the NUPRC, and as such, its only recourse was a judicial review, which must be filed within three months as provided by the Federal High Court Civil Procedure Rules.

Justice Emmanuel ruled that the reliefs sought by Bayelsa Oil Company, including claims involving torts and contracts, fell outside the court’s jurisdiction as defined by Section 251 of the 1999 Constitution. Furthermore, the court held that Bayelsa Oil Company lacked locus standi, as it failed to show participation in the second round of bidding for OML 46, and thus could not rely on the earlier revocation and re-award process.

Finally, the court ruled that Bayelsa Oil Company’s later suit constituted an abuse of court process, as it was based on similar matters already addressed in a previous suit filed in Lagos in 2020.

In conclusion, the Federal High Court dismissed Bayelsa Oil Company’s suit for lack of jurisdiction, reaffirming Halkin Exploration’s position as the legitimate holder of the oil mining license for Atala Marginal Field.