Nigerian court rules in favour of Halkin E&P in oilfield contract dispute
A Nigerian court has struck down a contract clause that charged 177 percent a year on late payments, in a
On October 22, 2026, the High Court of Abuja ruled in favor of Halkin Exploration and Production Limited (Halkin E&P) in a lawsuit brought against Eunisell Limited. The dispute revolved around Clause 10.4 of a service agreement between the two companies, which was deemed unenforceable. Clause 10.4 stipulated a daily late payment charge of 0.5 percent, equating to an annual rate of about 177 percent on a compound interest basis.
This provision led Eunisell to claim millions in penalties, reportedly more than ten times the original debt owed. The court's decision, penned by Justice S.B Belgore, declared Clause 10.4 "null, void, and of no legal effect whatsoever," invalidating all related invoices and assessments. Halkin E&P's legal representative, Chikaosulu Ojukwu, SAN, hailed the ruling as a triumph for the rule of law, emphasizing that the clause was contrary to public policy and should not have been enforceable.
The case arose when Eunisell abruptly withdrew from an oil well, causing damage, and Halkin asserted that the clause was intended to extort an unjust financial gain. Halkin plans to pursue a $50 million claim through the legal system.
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- Abuja High Court Rules in Favour of Halkin E&P Over Eunisell thisdaylive.com
