A Rivers State High Court sitting in Port Harcourt has ordered Belemaoil Producing Limited (Belemaoil) to pay the sum of $21.858million and another N10.81billion 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, 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 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 percent of its anticipated cash call inflow from its senior partner, NAPIMS but that no payment was made.

The firm argued 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 other 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, by 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 was entitled to payment only upon the complete delivery of all seismic products and all data related deliverables, adding that it was not indebted to BGP/CNPC and urged the court to dismiss the application for summary judgment brought by BGP/CNPC.

In his judgment, Justice G. 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.

The judge 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 counsel, he was 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 was no bona fide evidence that the debt owed to BGP/CNPC was disputed by Belemaoil.

The court held: “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.

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“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, therefore 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 percent per annum from the date of judgment until final liquidation of the judgment, while setting down the claims with regard to cost of action and pre-judgment interest for full trial.