Court orders oil firm to evacuate diesel, petrol stored in Tank Farm

(Nigeria) A Federal High Court in Lagos has granted leave to an oil marketing company, Chukelad Nigeria Limited, to evacuate its 2,804,735 litres of Automotive Gas Oil, AGO and 1,927,727 litres of Dual Purpose Kerosene, DPK, stored in a tank farm belonging to an oil firm , Zone 4 Energy Limited.

The tank farm, which is under a receiver appointed by First Bank of Nigeria Limited, is within the Calabar Free Trade Zone, CFTZ.

Trial judge, Justice Abudulazeez Anka held that the products should be evacuated with immediate effect. He ruled on an application by Zone 4 Energy’s lawyer, Mr Lanre Ogunlesi, SAN.

Another judge of the court, Justice Saliu Saidu, had on July 1, empowered the bank’s receiver to take over the entire assets of Zone 4 Energy at the CFTZ over an alleged debt owed the bank.

But, in a supporting affidavit, Zone 4 Energy said it had a prior agreement with Chukelad Nigeria to use the tank farm to store its AGO and DPK, before Justice Saidu made the order.

Zone 4 Energy said that Chukelad Nigeria paid it N7million to use the tank farm, adding that the bank’s receiver took over the assets while Chukelad Nigeria was loading its trucks at the depot.

The applicant said it had “substantial quantity” of Chukelad Nigeria’s products in its storage when the bank’s receiver took over the tank farm.

“In view of the fact that this matter in court might take time to resolve, it would be in the interest of justice to grant this application.

"The products are susceptible to market forces and if the prices drop, it would be a colossal loss to Chukelad Nigeria and we would be held liable,” Zone 4 Energy had prayed the court.

The receiver, Mr Emmanuel Oyebanji, who is also First Bank's lawyer, had opposed the application, contending that both the tank farm and the products stored in it were among the "charged assets" under receivership.

Justice Anka held that the application had merit and was properly before the court.

“The application succeeds and the objection is accordingly overruled. The products lying in the tank farm is accordingly ordered to be evacuated in the presence of the registrar monitoring same with immediate effect,” the judge said.