The Lagos State High Court has granted interim preservative orders in favour of United Bank for Africa (UBA) Plc in a $242 million petroleum products dispute involving Switzerland-based energy trading company Vitol SA and four shipping firms.
The order, issued by Justice K. A. Jose, followed allegations by UBA that petroleum cargoes meant for delivery to the bank were diverted to another party despite the completion of their voyages.
UBA’s legal team, led by Senior Advocate of Nigeria Bode Olanipekun, asked the court to grant the interim measures to protect the bank’s interests while the dispute is being resolved.
In her ruling, Justice Jose granted three prayers sought by the bank against Vitol SA, including measures to prevent the dissipation of assets and dealings in funds up to the disputed amount.
The bank’s application was brought under Order 43, Rule 1 of the High Court of Lagos State (Civil Procedure) Rules 2019 and the Lagos State High Court Practice Direction No. 2 of 2019.
According to an affidavit filed in support of the application, UBA’s Group Head of Recoveries and Remedial Management, Anthony Chilaka, said the bank had issued a letter of credit in favour of Vitol to facilitate a petroleum products transaction.
The cargo was subsequently transported to Nigeria, where the vessels’ masters issued bills of lading. UBA alleged that Vitol endorsed the shipping documents in the bank’s favour and handed over the original copies, which the bank said entitled it to take possession of the cargo upon completion of the voyage.
However, the bank claimed that it did not receive the gasoil despite the completion of the journey.
UBA further alleged that the petroleum products were diverted for the benefit of another party, describing the alleged non-delivery as conversion, misrepresentation and negligence.
The bank maintained that the parties involved had obligations arising from the transaction and the endorsed shipping documents but allegedly failed to fulfil them.
As part of its application, UBA also cited 34 financial institutions and public agencies, including commercial banks, merchant banks, microfinance banks, the Nigerian Ports Authority and the Nigeria Customs Service.
The substantive dispute is expected to determine the parties’ respective liabilities arising from the petroleum transaction and the alleged diversion of the cargo.
The interim orders are intended to preserve assets while the legal proceedings continue. The allegations against Vitol and the other parties remain subject to determination through the judicial process.
