From Femi Folaranmi, Yenagoa
A Rivers State High Court on Thursday ordered Shell Petroleum Development Company (SPDC) to stop termination of GSA logistic contract awarded to indigenous contractors in Niger Delta.
The oil company had in reaction to allegations by Ijaw Youth Council ( IYC) that it had breached the local content policy, stated that the review was done in accordance with the law and regulations, and involved all relevant agencies.
The Court presided over by Justice I.P.C. Igwe, restrained the SPDC from stopping, truncating or calling off the bidding process of contract number CW502377 already bid for by indigenous Niger Delta companies which is for position of logistic support services for government security agencies in their facilities in the region.
The claimants, in the suit numbered PHC/3578/CS/2022 and filed by Alabo Datelima Membere, Godknows Ologbolo on behalf of the Niger Delta Youths for Transparent and Accountability WatchDog, had approached the court seeking an interim injunction restraining the SPDC against termination of the GSA Logistics Services Contract.
The Nigerian National Petroleum Corporation Limited, the NNPC Upstream Investment Services (formerly known as National Petroleum Investment Services), the Nigerian Upstream Regulatory Commission and the Shell Petroleum Development Company of Nigeria limited were listed as respondents/defendants.
The order, which was first issued 10th November, 2022 and was re-affirmed on Thursday 20th April, 2023 based on the application of the claimant counsel.
Justice I.P.C Igwe, after hearing and determination on the motion on notice for interlocutory injunction, from the claimants’ Counsel, Tonye Wilson also ordered that an order of interim injunction be issued restraining the 4th defendants, Shell Petroleum Development Company (SPDC) or it’s privies, servants or agents from truncating the ongoing provision of logistic support services for government security agencies in facilities belonging to the 4th defendants pending the hearing and determination of the motion on Notice for interlocutory Injunction.
“That the claimant shall enter into an understanding in damages to be paid in favour of the defendants in the sun of Five million naira (N5,000,000) only should the motion on Notice and substantive case be found to be frivolous.
The Court however adjourned the substantive case to the 20th of June, 2023.
It would be recalled that indigenous contractors handling the GSA Logistics Services Contract are locked in battle with the SPDC over the supply of patrol speedboats and other logistics materials for the use by security personnel to protect oil facilities in and around oil host communities.
According to the aggrieved contractors, despite the commendable handling of the GSA contract over the years and benefits to oil host communities through their indigenous contractors, the SPDC is taking the said GSA contract away from our oil host communities in connivance with NIPEX to re-award the contract to non-indigenous contractors who do not know anything about the terrain of the Niger Delta.