- Says Accusation of funds Diversion Wicked, Outrageous Lie
By Abiola Olawale
General Hydrocarbons Limited (GHL) has continued to unveil troubling and significant details surrounding the ongoing loan dispute with First Bank of Nigeria Limited (FBN).
This conflict centres on the development of Oil Mining Lease (OML) 120, as GHL has been making revelations to shed light on the exact details and implications of FBN Holdings sloppy, inappropriate and imprecise approach to the dispute between GHL and the bank.
This is as GHL recounted how First Bank allegedly failed to oblige to contract terms led to an international incident in 2023, which nearly claimed the lives of 93 persons working on the oil rig.
GHL said the situation happened after it entered into a Subrogation or substitution Agreement with FBN on May 29, 2021. Under this subsisting agreement terms, GHL maintains that FBN Holdings was to fund GHL’s exploration and development of OML 120 in exchange for a 50% share of profits from oil proceeds over eight years.
GHL further stated that on October 7, 2023, the drilling rig Blackford Dolphin faced a serious, trying problem when it ran out of fuel, food, and other critical supplies.
According to the company, there were 93 people on board, triggering a situation that almost required a MAYDAY call.
According to reports, during this emergency, First Bank’s CEO and Executive Director were both out of Nigeria at the time. According to additional accounts, Olusegun Alebiosu, who is current the Managing Director and Chief Executive of First Bank, acted in place of the Managing Director when GHL urgently informed him about the precarious and delicate situation.
GHL revealed that Alebiosu consequently spoke with suppliers and service providers one after the other and promised to effect payment within three days.
However, GHL further maintained that First Bank never honoured its promise.
The company further insisted that owing to an alleged FBN’s failure to effect payments, GHL stated it prepared emergency supplies and acted accordingly.
However, “FBN labelled this intervention as a diversion of funds without evidence,” “despite GHL providing proof of payments made, leading to disputes.”
GHL insisted that all contracts and invoices were “duly vetted and paid by FBN through their Credit and Risk teams, therefore, rendering any claims of fund diversion laughable.”
The GHL argued that FBN’s repeated failures to effect timely payment for invoices within the contractual “framework of five days became 70 days or not at all, in a clear breach of its tripartite obligations.”
Additionally, GHL avers that it paid the suppliers, and acted to save the 93 souls onboard the rig, most of whom were foreign nationals, who had begun contacting their embassies and home governments, and to save Nigeria from an embarrassing international incident offshore Nigeria.
The company stated, “We will meet FBN in court with Daily Reports and log details to debunk this continuing misinformation of diversion.”
This comes after GHL’s Director of Strategy and Operations, Abdelmuizz Bello, emphasized that it was not indebted to FBN Holdings and had acted within the confines of legally binding agreements.
According to Bello, GHL entered into a Subrogation or substitution Agreement with FBN on May 29, 2021. Under this subsisting agreement terms, GHL maintains that FBN Holdings was to fund GHL’s exploration and development of OML 120 in exchange for a 50% share of profits from oil proceeds over the years.
This subsisting profit-sharing arrangement, GHL maintains, was appropriately designed to help FBN settle its non-performing loans (NPLs) and stabilize the bank’s financial standing in keeping the premier financial organization well afloat. The Oil company also clarified that FBN’s claims of indebtedness stemmed from unrelated NPLs extended to Atlantic Energy, a company operating separate oil fields under Strategic Alliance Agreements.
It was gathered that this deal pertained to the funding necessary for the exploration and development of Oil Mining Lease (OML) 120. The GHL contended that First Bank had not honoured the commitments outlined in their original binding contract, leading to significant concerns regarding the future of the oil project.
As a result, GHL initiated contempt proceedings against FBN and its directors, including Femi Otedola, the Chairman of FBN Holdings.
