In a major Ruling on Monday 28th October 2024, the Federal High Court sitting at Lagos State, Nigeria has dismissed a Motion of Preliminary Objection filed by Century Energy in the case.
Recall that following Century Energy’s failure and neglect to pay the debts owed to its creditors without reason and despite several efforts by creditors demanding payment of debts that have remained unpaid for over a year, one of such creditors, Ambrey Ltd, took out winding-up proceedings in 2023 against the major oil and gas service provider before the Federal High Court in *SUIT NO.: FHC/L/CP/1889/23* (a suit *between Ambrey Limited v. Century Energy Service Limited*).
Ambrey in its suit claimed that these debts had accumulated as a result of outstanding sums due to the creditors for the provision of security escort services rendered to Century Energy’s chartered vessels and remain unpaid to date.
Ambrey Ltd were contracted by Century Energy and required to provided security escort services for Century Energy and other clients with respect to the hiring of the Boka Pegasus Vessel for execution of Century Energy contract involving other companies which include *Boskalis Offshore Marine Services.
Century Energy had tried to fight the creditor’s Petition by filing a Preliminary Objection asking the court to strike out the matter and refer it to arbitration. The Court has now ruled against Century Energy and adjourned the matter for hearing of the creditor’s substantive Petition.
While Century Energy may pursue an appeal of the ruling, it does seem to be the case that the tides continue to rise and flow strongly against the major oil and gas service provider.