Federal High Court Sets Aside Firstbank Appointed Receiver Over Neconde in OML 42
• Declares appointment invalid Wale Igbintade The Federal High Court in a landmark ruling yesterday, set aside the purported appointment of the Receiver over Neconde and its interest in Oil
The Federal High Court in Nigeria recently ruled to invalidate the appointment of a Receiver over Neconde's interests in Oil Mining Lease (OML) 42. In a landmark decision, Justice Osiagor held that First Bank, acting through its trustee FBN Trustees, cannot enforce its facility by appointing a Receiver over Neconde or its OML 42 interest because the Deed of Charge has not yet crystallized.
The court issued an immediate injunction restraining the lenders from any enforcement actions against Neconde or attempting to appoint a Receiver until the Deed of Charge crystallizes. This ruling provides legal clarity and safeguards Neconde's operations and assets at a crucial time for the Nigerian upstream oil and gas sector.
Nestoil Group and Neconde expressed their commitment to constructive stakeholder engagement and the sustainable development of Nigeria's hydrocarbon resources.
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