- GHL says it *never* took a loan from First Bank, insisting their deal was a project finance partnership.
- The oil firm accuses First Bank of breaching an agreement, leading to a major loss of trust.
- GHL claims First Bank’s failure to fully finance a key oil project cost them a whopping $47 million!
- Now, GHL is seeking over $1 billion in damages, while First Bank wants $225 million. Who’s telling the truth?
GHL Fires Back: It’s Not a Loan, It’s a Partnership!
GHL is adamant: their relationship with First Bank wasn’t a simple loan. They’re calling it a “project finance relationship” related to Oil Mining Lease (OML) 120. According to GHL, First Bank approached *them* to finance the whole operation – exploration, development, *everything*. The agreement? A 50/50 profit split, with First Bank getting its costs covered.
The Tripartite Agreement: A Deal Gone Sour?
Things get even more complicated. GHL says a “Tripartite Agreement” was set up with the Asset Management Corporation of Nigeria (AMCON). The goal was to help First Bank deal with a massive $600 million non-performing loan. GHL essentially guaranteed First Bank’s debt to AMCON, which, they say, helped the bank swing from a huge loss to a hefty profit in 2021!
But here’s the kicker: GHL claims First Bank didn’t fulfill its end of the bargain. They allegedly failed to fully finance the OML 120 project, leading to major financial setbacks.
Millions Lost, Trust Broken
GHL is not holding back. They claim First Bank’s failure to invest properly in OML 120 resulted in a staggering $47 million in losses due to delays and downtime. Now, the oil firm is in arbitration, and the lawyers are having a field day.
First Bank’s Claim: Premature and Unjustified?
GHL argues that First Bank’s demand for $225 million is premature. They say the project hasn’t even reached the point where commercial production is happening, and therefore, the money isn’t due yet.
Asset Dissipation? GHL Says It Didn’t Happen!
First Bank has accused GHL of trying to hide assets, but GHL is vehemently denying this. They claim all payments were made directly by First Bank to reputable third-party companies after thorough checks. No shady business here, they insist.
The Billion-Dollar Battle: Courtroom Showdown Looms
The stakes are incredibly high. GHL is seeking over $1 billion in damages, while First Bank is demanding $225 million. This dispute is far from over, with both sides digging in for a long and potentially messy legal battle.
What’s Next?
This case is one to watch. It raises serious questions about project finance, agreements, and the responsibilities of major financial institutions. Will GHL get the billion-dollar payout they’re after? Will First Bank recover its $225 million? Only time (and the courts) will tell.
Stay tuned for updates as this high-profile financial feud unfolds!
About The Author
