General Hydrocarbons Limited (GHL) has refuted allegations that it owes First Bank of Nigeria (FBN) $225.8 million, asserting that the claims are false and that a moratorium on loan repayment remains in effect pending commercial oil production from its OML 120 operations.
In a press statement addressing recent reports and social media claims about a court freezing GHL’s accounts over the alleged debt, the company clarified that the debt issue arose from FBN’s mismanagement of its own non-performing loans.
GHL explained that it entered a Subrogation Agreement with FBN in 2021, under which the bank agreed to fund oil operations in exchange for a 50% profit share from OML 120. GHL claims that the funds provided by FBN were disbursed irregularly and not in compliance with agreed timelines, causing operational inefficiencies and financial losses.
The company emphasized that the $185 million disbursed by FBN is not due for repayment, as the loan is still within the agreed moratorium period. GHL accused FBN of using the debt claims as a tactics to take over its oil block and obstruct ongoing funding efforts.
GHL stated that it secured court injunctions in December 2024 preventing FBN from interfering with its operations. However, it alleges that FBN, through another legal maneuver, obtained a Mareva injunction freezing GHL’s accounts in a bid to confuse the public.
GHL has vowed to pursue justice, accusing FBN of acting in bad faith and breaching their financing agreement, which it says helped the bank avoid financial collapse in 2021. The matter is now back before the Federal High Court in Lagos.
