A recent statement by General Hydrocarbons Limited (GHL) has shed light on a disturbing incident involving First Bank of Nigeria (FBN) that put the lives of 93 people at risk on an oil rig. According to GHL, FBN’s repeated failures to meet its financial obligations led to a critical situation on October 7, 2023.

“As we said before and will repeat now, all GHL contracts and invoices were vetted and paid by FBN through their Credit and Risk teams directly to all service providers,” GHL stated. “FBN’s repeated failures to pay on time within the contractual framework of 5 days which became up to 70 days or not at all, in a clear breach of its Tripartite Agreement obligations… led to an international incident on October 7, 2023, when the drilling rig Blackford Dolphin, ran out of fuel, food, water and other critical supplies with 93 Souls onboard, and the Rig was on the verge of declaring MAYDAY.”

GHL claimed that FBN’s Managing Director, Olusegun Alebiousu, who was then the Chief Risk Officer, promised to make payments within three days, but failed to do so. “He then worked the phone, calling Suppliers and Service Providers one after the other and promised payment within 3 days. Based on FBN’s assurances, the Service Providers made emergency supplies, but the payment never came,” GHL stated.

To prevent a catastrophe, GHL had to enter into an Irrevocable Third-Party Payment Order with one of the offtakers to pay the suppliers directly. “GHL had to stand its ground against such bullying… We will meet FBN in court with Daily Reports and log details to debunk this continuing misinformation of diversion,” GHL asserted.

The incident has raised questions about FBN’s commitment to good governance and the rule of law. GHL accused FBN of abusing court processes and failing to comply with a valid court order. “FBN then went to Justice D Dipeolu of the same Federal High Court on December 30, 2024, with same lawyers, without disclosing this relevant judgment to the Learned Justice, to obtain a Mareva injunction Exparte freezing order against GHL and individual directors who never signed personal guarantees and thus not personally liable,” GHL stated.

GHL questioned FBN’s motives, asking why it did not put GHL on notice and why it sought an Exparte order. “Is this how a 130-year old blue chip financial institution committed to good governance and rule of law, should behave? Why the hurry to score cheap points to use on social media? If FBN was so sure of its facts why not put GHL on notice? Why an Exparte?” GHL asked.

The dispute between GHL and FBN highlights the need for transparency and accountability in business dealings, particularly in the oil and gas industry. As GHL stated, “We are ready, willing and able to present the body of evidence to any court… Luckily, FBN has not denied the Subrogation MOU and the benefits it got upfront from GHL’s intervention. They should meet their obligations and all will be well.”