Aiteo Eastern E&P Company Limited has triumphed as a Federal Capital Territory (FCT) High Court in Abuja has nullified arbitration proceedings at the International Chamber of Commerce (ICC), London, filed against oil firm by a consortium of lenders that helped finance its acquisition of Oil Mining Lease (OML) 29.
The court ruled that the arbitration violated existing injunctive orders.
Aiteo acquired OML 29 and the Nembe Creek Trunk Line (NCTL) from Shell in a landmark $3.01 billion transaction in 2014.
The purchase was significantly backed by Aiteo’s billionaire founder, Benedict Peters, who personally contributed approximately $1 billion to finalize the deal and resume operations.
Justice S.B. Belgore delivered the ruling on Tuesday, July 8, 2025, in response to an application filed by minority equity partner Tempo Energy Nigeria Ltd.
According to court filings, the dispute stemmed from a complex multi-party financing arrangement dating back to 2014.
Tempo Energy alleged that several co-financiers breached contractual obligations and initiated proceedings in the High Court of England and Wales, alongside arbitration at the ICC on December 11, 2020—without involving Tempo.
In response, Tempo filed a suit on January 14, 2021, seeking injunctive relief to stop further actions in the UK and ICC.
On January 22, 2021, the FCT High Court granted interim injunctions restraining the defendants from continuing both the foreign litigation and arbitration pending the outcome of the motion on notice. All related motions were consolidated and adjourned.
The suit, marked FCT/HC/CV/079/2021, named multiple defendants including Aiteo Eastern E&P Company Ltd, African Finance Corporation, Ecobank Nigeria Ltd, First Bank of Nigeria, Guaranty Trust Bank, Fidelity Bank, Shell Western Supply & Trading, Shell International Trading & Shipping, Citibank Europe (UK Branch), Citibank N.A. (London Branch), FBN Trustees, Zenith Trustees, FBN Merchant Bank, Sterling Bank, Union Bank, Zenith Bank, and Dame Elizabeth Gloster.
Despite the subsisting interim orders, the defendants proceeded with the ICC arbitration from 2021 to 2024.
They later appealed the High Court’s injunction at the Court of Appeal, Abuja Division.
On April 25, 2025, the Court of Appeal unanimously upheld the High Court’s 2021 orders, dismissed the appeal as an abuse of court process, and imposed a N1.5 million cost against the appellants.
The appellate court also ordered an expedited hearing of the pending motions and cautioned that actions violating valid court orders could be rendered void.
At a resumed High Court hearing held from May 20–22, 2025, Tempo Energy sought a restorative order declaring the ICC arbitration null and void. Tempo’s counsel, Kehinde Ogunwumiju, SAN, argued that the proceedings were conducted in clear defiance of court orders.
Counsel representing Ecobank Nigeria and other defendants, including Mrs. Joke Aliyu and Mr. Babatunde Fagbohunlu, SAN, filed a preliminary objection challenging the jurisdiction of the FCT High Court, arguing it lacked authority over foreign arbitral matters.
Justice Belgore overruled the objection, labeling it incompetent and an abuse of court process. He sided with Tempo Energy and formally declared the ICC arbitration invalid, citing its contravention of the court’s earlier injunctions.
The judge reaffirmed that the interim orders of January 22, 2021, remain valid and binding on all parties. He warned against further disobedience, awarded an additional N500,000 in costs to Tempo Energy, and adjourned the matter to September 29, 2025, for hearing of the consolidated interlocutory applications.
Aiteo had previously taken legal action against Shell Petroleum Development Company of Nigeria, accusing it of fraud and misrepresentation during the 2014 sale of its 30% stake in OML 29. In suit number FHC/ABJ/C8/738/2021 filed at the Federal High Court in Abuja, Aiteo demanded $2.5 billion in compensation, claiming Shell failed to disclose the true condition of the oil wells.
Aiteo attributed its difficulty in meeting financial obligations to the asset’s poor state and frequent vandalism by oil thieves.
Documents revealed that the lender consortium provided approximately $2 billion in financing: Zenith Bank – $323 million; First Bank and GTBank – $200 million each; Fidelity Bank – $175 million; AFC – $125 million; Ecobank and Union Bank – $100 million each; Sterling Bank – $60 million; and Shell Western – $512 million.
Benedict Peters’ total equity contribution included $898,237,697.35 in cash and an additional $257 million to cover fees, ancillary expenses, and production restart. Tempo Energy and other minority stakeholders contributed $136 million.