Court halts termination of indigenous contractors’ deal by SPDC

Shell Petroleum Development Company
A Rivers State High Court sitting in Port Harcourt has re-affirmed the order for the Shell Petroleum Development Company (SPDC) to stop the termination of the GSA Logistics Services Contracts handled by indigenous contractors from oil host communities in the region.
 
According to the court presided over by Justice I.P.C. Igwe, the SPDC is restrained from stopping, truncating, or calling off the bidding process of contract number CW502377 already bided for by indigenous Niger Delta companies, which is for logistic support services for security personnel protecting oil facilities in and around oil host communities.
 
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, first issued on November 10, 2022, and re-affirmed on April 20, 2023, was based on the application of the claimant’s counsel.
 
Justice I.P.C Igwe, after hearing and determination of 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 its 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 only should the motion on Notice and substantive case be found to be frivolous. The court, however, adjourned the substantive case to June 20, 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 use by security personnel protecting 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 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
 
They also alleged that some staff in the security department of SPDC, particularly, Ben Greensmith, Diki Omuku, Agnes Odimarha, and their cohorts in NIPEX are fronting their kinsmen and surrogates to take over the said GSA Logistics Services Contracts from the indigenous contractors.
 

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