We willingly rescued First Bank – Obaigbena owned Oil Exploration Firm reacts

General Hydrocarbons Limited (GHL), an Oil Exploration Firm owned by the proprietor of ThisDay newspaper, Mr Nduka Obaigbena has debunked an allegation of refusing to pay a bad loan from First Bank of Nigeria meant for GHL’s “oil and gas drilling campaign on OML 120, Deep Offshore Nigeria”.

In an e-signed statement by the Board Chairman, Mr Nduka Obaigbena on 10th January, 2025, GHL said, it has, “at the request of First Bank of Nigeria Limited (FBN), reached a Subrogation Agreement following the bank’s non-performing loans”.

GHL stated that when it was “becoming a systemic risk for FBN to finance the exploration, development and operations of OML 120 and we both share profits. First Bank share being used to liquidate its Non- Performing Loans (NPLs).

“Following the Subrogation Agreement, we gave them comfort in a Tripartite Agreement resulting in FBN’s return to profitability and growth.

“Since then, FBN has breached its obligations under the Subrogation Agreement, and Tripartite Agreements, resulting in the current challenges.

“We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination. We hope for a favourable outcome under our system of justice.

“Unfortunately, First Bank continues to disregard and disobey a subsisting court judgment in favour of GHL and instead has chosen to mislead the public.

“Our lawyers are addressing this flagrant breach in the right forum. There is no cause for alarm.

“As a going concern and as the one and only wholly-owned Nigeria company in Deep Offshore Nigeria (75KM at Sea and over 850-1000 meters water depth), our oil and gas campaign has discovered Oil and Gas to the glory of Nigeria, thanks to the ingenuity of our Nigerian-born engineers and technical partners including Messrs Schlumberger (SLB), Baker Hughes, Century Group, etc.

“With its strong assets base, GHL is in goodstanding to meet any obligation that may fall due.

“We call on our valued partners to remain calm as we work through the courts, arbitration or mediation to seek solutions to our differences in strategy, not in form or substance.

“We willingly rescued First Bank of Nigeria Limited (FBN) from the abyss and are not about to throw away the baby and the bath water. Through our collaboration we have resolved

“FBN financial challenges and discovered crude oil for the Federal Republic of Nigeria.

“We continue to believe that justice and reason will prevail, sooner or later”.