The Court of Appeal has cleared the path for the trial of a long-standing dispute over the ownership of the Dawes Island Field, as Makmera Nigeria Limited renews its claim to a 49 per cent equity stake in the asset. This development intensifies scrutiny over the title held by Petralon 54 Limited and marks a new phase in the protracted legal battle.
Background of the Dispute
Makmera Nigeria Limited insists it lawfully acquired the 49 per cent stake through an assignment from Eurafric Energy Limited, following a partnership arrangement with Funtay Global Resources Limited, the predecessor in title to Tako E&P Solutions Limited. The case, marked suit no. FHC/L/CS/479/18, was instituted in 2018 after disputes arose over the interest.
The respondents in the suit are Tako E&P Solutions Ltd, Petralon 54 Ltd, and the former industry regulator, the Department of Petroleum Resources. Proceedings were stalled for years after Petralon filed an interlocutory appeal, CA/LAG/PRE/ROA/1079M/25, challenging a June 2022 ruling of the trial court. This appeal effectively halted substantive hearing at the lower court.
Appeal Court Ruling
On April 14, 2026, the Court of Appeal declined the appeal, holding that the substantive suit should proceed to conclusion before any appellate intervention. The court noted that interlocutory appeals should not be used to frustrate or unduly delay matters already slated for trial. This ruling has now cleared the path for the resumption of proceedings at the Federal High Court.
Implications for the Oil and Gas Sector
The case is likely to bring renewed attention to the chain of transactions, including farm-in arrangements, regulatory approvals, and equity allocations tied to the Dawes Island asset. The development could cast a shadow over the field's ownership structure, as competing claims by multiple parties continue to raise questions about title validity.
With the appellate court directing all parties back to the trial court, stakeholders in the oil and gas sector are closely monitoring the proceedings. The outcome is expected to determine the rightful ownership of the contested 49 per cent stake, with potential implications for similar disputes in the industry.
