There is a brewing legal battle between the management of Seplat Petroleum Development Company (SPDC) and Access Bank of Nigeria Plc, over the indebtedness of a third party.
This has led to the sealing off of the SPDC’s corporate headquarters at 16A Temple Road, Ikoyi, Lagos.
However, the management of SPDC has maintained that it is not a shareholder in Cardinal Drilling, neither has it any outstanding loan obligations to Access Bank. SPDC further stated that it did not at any time make any commitment or guarantee in respect of Cardinal Drilling’s loan obligations to Access Bank.
In response to the action taken by Access Bank, the management of SPDC has stated that the court order lacked any merit or justification. SPDC also plans to take legal actions in order to counter the order.
What they are saying
A part of the press statement issued by SPDC, signed by its company’s Secretary and General Counsel, Mrs Edith Onwuchekwa, and seen by Nairametrics reads thus:
“We understand that Cardinal Drilling has outstanding loan obligations to Access Bank. However, SEPLAT is neither a shareholder in Cardinal Drilling, nor has outstanding loan obligations or guarantees to Access Bank and did not at any time make any commitments or guarantees in respect of Cardinal Drilling’s loan obligations to Access Bank. SEPLAT strongly believes that there is no merit or justification for this action against it and has taken prompt legal action to vacate the court order pursuant to which the building was sealed.
“This action was taken by Access Bank without any prior notice to SEPLAT, as required under Nigerian law. SEPLAT will vigorously defend against this improper action to the full extent of the law and will seek all appropriate legal remedies.”
What you should know
According to findings by Nairametrics, the third party – Cardinal Drilling Service Limited, which provides drilling services to SPDC, has outstanding loan obligations to Access Bank, prompting the legal action.