The Federal High Court in Port Harcourt has reaffirmed its earlier ruling directing China National Petroleum Corporation to pay $100 million in damages to Cutra International Limited over a long-running dispute tied to Oil Prospecting Licence (OPL) 471.
In a decision delivered on April 24, 2026, Justice Adamu Mohammed dismissed CNPC’s request to set aside the court’s May 23, 2025 judgment, stressing that the issues raised had already been settled. The judge ruled that the court had become functus officio – meaning it no longer had authority to revisit the matter after delivering its final decision.
The case centres on OPL 471, an oil block allocated during Nigeria’s 2006 mini-bid round. In the substantive judgment last year, the court held that Cutra International was entitled to a 10 per cent equity stake in the block as the recognised local content partner under an award letter issued by the Ministry of Petroleum Resources on June 29, 2006.
The court found that CNPC later relinquished the oil block to the Federal Government in November 2015 without informing or obtaining consent from Cutra, an action the judge said infringed on the Nigerian company’s proprietary rights.
While Cutra had initially sought $500 million in compensation based on projected earnings from the block, the court ruled that only part of the claim was sufficiently proven and awarded $100 million as reasonable damages.
Following the judgment, CNPC filed an application in October 2025 asking the court to extend the time to challenge the ruling. The company argued that it had not been properly served court processes and only became aware of the judgment after garnishee proceedings were initiated against its accounts. It also maintained that, as a foreign firm, it should have been served through diplomatic channels.
However, the court rejected those claims. Justice Mohammed stated that records showed CNPC had been served multiple times through courier delivery, email correspondence and public notices in national newspapers but failed to respond or appear in court.
The judge also dismissed the argument that the originating summons had expired, pointing out that the court had earlier renewed the summons in May 2024.
On the issue of diplomatic service, the court held that such a procedure only applies where a formal convention exists between Nigeria and the foreign country involved – a condition CNPC did not establish.
With the dismissal of the application, the $100 million award in favour of Cutra International remains in force, clearing the way for the company to continue enforcement proceedings to recover the judgment sum.
