Court Rules Oil Company Cannot Settle $15.3 Million Debt and Appoints Administrator

In a significant legal judgement, the Federal High Court in Lagos on Friday ruled that AMNI International Petroleum Development Company is incapable of discharging its outstanding debts. The court ordered that Sam Aiboni, a legal practitioner, be appointed as the administrator for the company's operations and assets.

Judge Chukwujekwu Aneke issued the ruling following an application lodged by Cenroc FPSO Solutions Nigerian Limited. The judge noted that AMNI failed to pay a total amount of $15.3 million ($15,261,329) owed under agreements dated April 1, 2019.

The ruling references Contracts Nos. CAP-AMN-CFS-1121-AGR-20001 and 03-AMN- CFS-GE-CNT-10001, which were cited during the proceedings. The court concluded that AMNI had become incapable of settling its debts based on its financial circumstances and its failure to clear the outstanding amounts.

As a result, the judge appointed Mr. Aiboni to manage all assets, properties, resources, and operational affairs of AMNI, including the execution of its contracts regardless of their locations.

Additionally, the order includes the immediate control of AMNI’s office complex situated at Plot 1377, Tiamiyu Savage Street, Victoria Island, Lagos, or any other premises affiliated with the company. This also encompasses the vessel FPSO Princess Aweni (previously known as Armada Perkasa) and its accessories docked at Okoro Field in Port Harcourt, Rivers State, within Nigerian territorial waters, along with other assets both domestically and internationally.

The court recognized Cenroc as a ranking creditor and prioritized its claims in the administration process of AMNI. To reinforce this decision, Mr. Aneke granted a permanent injunction that prevents AMNI's leadership from interfering with the administrator's responsibilities as defined by the Companies and Allied Matters Act, 2020.

CAMA 2020 allows a court-appointed administrator to take charge of a financially troubled company to safeguard creditor interests and manage assets effectively.

The application, filed on July 23, 2025, was substantiated by a detailed affidavit from Oghenekaro Okodiya, with supporting documents and statements from Olalekan Kareem.

During the hearing, the motions were presented by Messrs Kareem and Okodiya, while the interests of AMNI were represented by Senior Advocate of Nigeria (SAN) Bedemi Ademola-Bello, alongside Ochu Agbai-Abosi and Damilola Akeredolu, who contested the applications put forth by Cenroc.

In issuing the ruling, the court reflected on the pressing concerns regarding financial obligations within Nigeria’s oil sector. In 2025, the House of Representatives identified several oil companies, including AMNI, as significant debtors to the federal government, contributing to growing scrutiny of the industry.

By placing AMNI under administration, the court shifts the operational management of its designated assets to the appointed administrator while restricting actions that may disrupt the orderly management of the company and protect the rights of creditors.