A High Court in Port Harcourt, Rivers State, the Niger Delta Region of Nigeria has ordered Belemaoil Producing Limited (Belemaoil) to pay the sum of $21, 858,185.12 and another N10,810,270,635.00, to BGP/CNPC International Nigeria Limited being an unpaid balance of services rendered for an executed contract.
BGP/CNPC, a limited liability company incorporated in Nigeria, had in Suit No. PHC/3442/S/2022 against Belemaoil, claimed that by a tripartite contract No. BPL055017-00063 signed on 04/02/2019, that they were contracted to provide onshore and swamp seismic acquisition services in respect of OML 55 for a period of three years, effective 24/04/18 and to lapse on 23/04/2021.
The suit noted that the contract sums with a payment split of 40% payable in Naira, while 60% payable in United States Dollar and that the firm had between November 2019 and January, 2021, it sent several invoices to Belemaoil for payment of work done, all of which Belemaoil duly received, acknowledged and did not dispute at all material times.
The firm claimed that it wrote several demand letters to Belemaoil, which were also duly received, without objecting to same, adding that Belemaoil had given its bankers (Sterling Bank PLC and Access Bank PLC) letters of irrevocable payment instructions in favour of BGP/CNPC and its co-contractor for payment of 90% of its anticipated cash call inflow from his senior partner NAPIMS but that no payment was made.
BGP/CNPC opined that several meetings were held by the parties wherein the outstanding sums were reconciled and agreed upon, and Belemaoil reiterated its commitment to paying the debt and agreed on a time line schedule for payment of the part of the debt that may not be accommodated by NAPIMS cash call contribution.
The firm noted that despite the agreement and repeated demands, Belemaoil failed to pay the debt which impacted negatively on their business and ability to meet its financial obligations, thereby initiating the suit through a summary judgment procedure, exhibiting tendering 32 copies of invoices, letters of demand, minutes of meetings and others documents.
But, Belemaoil in opposition to summary judgment admitted that BGP/CNPC was actually engaged to execute the contract and was issued some invoices wherein some discrepancies were discovered and several meetings were held to reconcile the differences in the amounts quoted by BGP/CNPC.
Belemaoil stated further that the sum of the invoices submitted by BGP/CNPC was a total of $28,008,170.07 and N 6,413,890,343.91, out of the said amount, Belemaoil made payment of the sum $7,578,365.67 and N 1,768,718,772.48, adding that the outstanding invoices issued by BGP/CNPC is $22,358,185.12 and N 5,053,732.656.30, but could not be attended to due to non-compliance with the terms of the contract by BGP/CNPC, for refusing to release data on work done to Belemaoil.
They told the court that all the invoices submitted have no certificate of job completion, and that BGP/CNPC is entitled to payment only upon the complete delivery of all seismic products and all data related deliverables, stating that it is not indebted to BGP/CNPC and urged the court to dismiss the application for summary judgment brought by BGP/CNPC.
Meanwhile, Belemaoil had during the pendency of the suit, sought the leave of court to settle the matter out of court and leave was granted by the court, and paid to BGP/CNPC the sum of N 2,440,000,000.00, and $500,000.00 out of the outstanding indebtedness, but failed to pay the balance.
However, delivering his judgment, Presiding Judge, Justice G. O. Ollor, held that in accordance with the Rules of court, judgment would be entered against a Respondent who is unable to show that he has a good defence to the claim.
Ollor noted that upon a careful perusal of all the processes filed by the parties and the application for summary judgment in particular, the affidavits, Exhibits and submission of both learned Counsels, he is not in doubt that BGP/CNPC was engaged by Belemaoil to provide onshore and swamp seismic acquisition works in respect of OML 55 which BGP/CNPC issued its invoices to Belemaoil, and that Belemaoil also admitted its indebtedness to BGP/CNPC in several meetings and in the documents before the court and that there is no bona fide evidence that the debt owed to BGP/CNPC is disputed by Belemaoil.
Ollor held further that the letters issued by Belemaoil, the irrevocable payment instruction to its banks (Access Bank and Sterling Bank) in respect of its indebtedness and resolutions reached at meetings with Belemaoil, BGP/CNPC and IDSL wherein Belemaoil admitted its liability to BGP/CNPC, reveals the fact that Belemaoil does not dispute any part of the claim being asserted by BGP/CNPC, even as Belemaoil did not dispute that work was done by BGP/CNPC nor the invoices that were issued.
The court held: “The Defendant/Respondent having failed to pay within the sixty days (60) period prescribe by the contract, the Defendant/Respondent has deprived itself of the benefit of the Naira to USD exchange rates applied in the unpaid invoices. Allowing the Claimant/Respondent to benefit from its own wrong will be unjust and contrary to equity.
“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 defence to this suit of the Claimant/Applicant.
“Accordingly, I hold from the above findings that the application of the Claimant/Applicant for summary judgment in this suit is meritorious and it is granted as prayed”.
The Court, however, ordered Belemaoil to pay to BGP/CNPC, the sum of N10,810,270,635.00, and $21, 858,185.12, being the balance outstanding of the invoices issued by BGP/CNPC to Belemaoil for work done.
The Court also ordered Belemaoil to pay post judgment interest at the rate of 10% per annum from the date of judgment until final liquidation of the judgment, while setting down the claims with regards to cost of action and pre-judgment interest for full trial. A cost of N200,000.00 was also awarded against Belemaoil and in favour of BGP/CNPC by the court.
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