The court sitting in Port Harcourt reaffirmed the order for SPDC to stop the process of termination of the GSA Logistics Services Contracts handled by indigenous contractors from oil-rich communities in the region.
A Rivers State High Court on Thursday ordered Shell Petroleum Development Company (SPDC) not to terminate GSA Logistics Contracts awarded to indigenous contractors in the Niger Delta in Nigeria.
The court sitting in Port Harcourt reaffirmed the order for SPDC to stop the process of termination of the GSA Logistics Services Contracts handled by indigenous contractors from oil-rich 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 bid for by indigenous Niger Delta companies. This is for the position of logistics support services for government security agencies in their facilities in the region.
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 Watch Dog, had approached the court seeking an interim injunction restraining the SPDC from terminating the GSA Logistics Services Contract.
The Nigerian National Petroleum Company Limited (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 are listed as respondents/defendants.
The order, which was first issued on November 10, 2022, and was reaffirmed on Thursday, April 20, 2023 is based on the application of the claimant’s counsel.
Justice I.P.C Igwe, after hearing and determination on the motion on notice for interlocutory injunction, from the claimants' counsel, Tonye Wilson Esq, 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 sum of five million naira (N5,000,000) only should the motion on notice and the substantive case be found to be frivolous.
The court however adjourned the substantive case to June 20, 2023.
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 the use by security personnel to protect oil facilities in and around oil production and 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 contracts away from host communities in connivance with NIPEX to re-award the contract to non-indigenous contractors who do not know about the terrain of the Niger Delta.
They also alleged that some workers in the security department of SPDC and their cohorts in NIPEX are pushing their kinsmen and surrogates to take over the said GSA Logistics Services Contracts from the indigenous contractors.