Suit No Phc4086cs2022 – Pioneer Alfa Petroleum Services Limited V. Belema Oil Producing Limited Website Publication
Judgement was delivered on the 23rd day of May 2025.
Background
We represented the Defendant in this suit wherein the Claimant instituted the suit against the Defendant seeking the following reliefs:
a. “The sum of $440,0007.01 (Four Hundred and Forty Thousand, Seven and One Cent United States (US) Dollars) being the balance sum due to the Claimant from the rendering of production enhancement and optimization services to the Defendant which has remained unpaid from 17th June 2020.”
b. “Interest on the Judgement sum at the rate of 21% per annum from the date of Judgement until final liquidation of the Judgement debt.”
The Claimant alleged that it entered into a contract with the Defendant to provide production enhancement and optimization studies for onsite studies implementation, and supervision for oil well OML 55 being operated by the Defendant, and that as per the contract, it was to be paid in both Naira and US Dollar.
Although the Claimant admitted that the Defendant had made the full Naira payments for the services rendered, the Claimant argued that the Defendant had only made part payment in US Dollars and has since failed/refused to make the outstanding US Dollar payments arising from the US Dollar invoices (Exhibit C) in the total sum of $440,0007.01.
In defence of this suit, we, on behalf of the Defendant, fully admitted the existence of the contract with the Claimant but strongly contended that as a highly reputable and organised entity, the Defendant is not in any way indebted to the Claimant in US Dollar or Naira as it has fulfilled its’ obligations arising from the contract.
The Defendant also argued that the balance of payment demanded by the Claimant in the tune of $440,0007.01 is for work allegedly done by the Claimant after the expiration of the contract without the consent, concurrence, affirmation, or confirmation of your Defendant. In other words, we strongly maintained that the Defendant cannot be liable to make payments or perform further obligations after the expiration of the contract on the 31st day of December 2017, especially after it reminded the Claimant of the expiration via a letter dated 30/01/2018 – Exhibit D3.
Trial commenced with the Claimant fielding a sole witness and tendering several documents. In defence of this suit, we also fielded a sole witness, through whom we also tendered relevant documents.
At the end of the trial, parties filed, argued, and adopted their respective final written addresses wherein we urged the court to dismiss the suit in its entirety for being unsubstantiated, frivolous, speculative, and amounting to gold digging.
Judgement
First, the court held that undoubtedly, the contract was for a period of one year having commenced on 1st January 2017 and elapsed on 31st December 2017 (see page 8 of the Judgement). The court also found that the Defendant is not indebted to the Claimant, and that the Claimant is seeking payment for work done after the expiration of the contract, which is unjustifiable (see page 12 of the Judgement).
However, at the tale end of the Judgement (specifically at page 12 – 13), the court held as follows:
“The Claimant has not done much to lay claim over work not done within the time agreed by parties in Exhibit A. This suit ought to be dismissed as the invoices are for months outside the time span in Exhibit A. Howbeit, looking at Exhibit C (the dollar invoices), the first two invoices are for October and November 2017. I shall accept the first invoices. They represent work done in October and November, 2017 within the time agreed. That is $36,254.43 and $34,267.36 US Dollars. This as I see it, is the extent of the merit of the Claimant’s case.”
From the above, the court made an Order for the Defendant to pay the sums of $36,254.43 and $34,267.36 US Dollars to the Claimant rather than $440,007.01 claimed/demanded by the Claimant as the said amounts represent work done within the lifespan of the contract.
Granville Abibo & Co
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