Contract Breach: Firm Sues Shell, NPA, AGF, Demands N6.4tn

A Stevedoring servicing company, Matreach Logistics Limited has dragged Shell Production Development Company to a High Court of the Federal Capital Territory in Abuja over alleged breach of contract agreement.

The company, in a suit with Ref. No. FCT/CV/408/19 file by its lawyers, Onyeka Osigwe and Ekene Arubaleze from the law firm of Goalcast Legal Services, is demanding N6.4 trillion as royalty dues, operational cost and general and exemplary damages by SPDC.

The Nigerian Ports Authority and Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN) were listed as second and third defendants in the suit which processes were obtained by journalists in Abuja on Wednesday.

The claimant said it was one of the Stevedoring service providers recommended by the Federal Ministry of Transport in 2012 for appointment to carry out dock labour operations within Bonga on/offshore terminal operated by SPDC in line with international best practices.

According to Matreach, the refusal of SPDC to grant it access to the Bonga onshore/offshore terminal amounted to “frustration of contract.”

The claimant also said that the defendants’ failure and or refusal to execute the tripartite agreement as directed in the letter of appointment dated August 16, 2013, amounted to frustration and breach of contract.

Among the reliefs demanded by the plaintiff included an order of the Court compelling SPDC to grant it access to carry out the contract.

Matreach also wanted “An order of the Court restraining the defendants, their agents, agencies, servants and or privies from advertising, requesting for bids, negotiating and or in any manner whatsoever reopening the appointment of a dock labour employer for the provision of stevedoring services for the Bonga on/off shore terminal of which the claimant’s appointment is still subsisting in line with the Nigerian Ports Authority Act.

“An order of the Court compelling the first defendant to pay the claimant the sum of N36, 924, 600, 000: 00 as royalty dues and payable to the claimant by the first defendant for a period of seven years.

“An order of the Court compelling the first defendant to pay the claimant the sum of N2, 111, 883, 300:00 as operational cost due and payable to the claimant by the first defendant and N25 billion as general and exemplary damages.”