General Hydrocarbons limited debunks owing First Bank

Stanley Ihedigbo

General Hydrocarbons Limited (GHL) has refuted claims that it owes First Bank of Nigeria (FBN) $225 million.

According to GHL Director of Strategy and Operations, Abdelmuizz Bello, the claim is misleading and malicious, and there is a moratorium in place pending commercial oil production.

The dispute between GHL and FBN dates back to 2021 when the two companies entered into a Subrogation Agreement.

Under the agreement, FBN was to fund GHL’s exploration, production, and development of OML 120 in exchange for a 50:50 profit-sharing ratio.

However, GHL claimed that FBN failed to meet its financial commitments, resulting in critical challenges for the development of OML 120.

Despite disbursing $185 million, FBN’s payment schedule was irregular, leading to massive losses and inefficiencies.

GHL also alleged that FBN became a conflicted lender, risk manager, and operator, taking full responsibility for all financial disbursements.

The company claims that FBN’s actions are an attempt to bully and force GHL out of the transaction and take over the oil bloc.

The dispute has led to a series of court battles, with GHL obtaining injunctions against FBN to secure its commercial and economic interests.

Despite the existence of a subsisting court order, FBN obtained an interim Mareva injunction restraining GHL and its shareholders from operating their accounts over the purported debt.

GHL has denied any wrongdoing and claims that the loan is still within the moratorium period.

The company is seeking to exercise its options under the agreement to find new lenders and partners to save the project for Nigeria.