Court Upholds $100m Judgment Against CNPC In OPL 471 Dispute With Nigerian Firm

Federal High Court dismissed CNPC’s challenge, reaffirming $100 million damages awarded to Cutra over disputed oil licence.

A Federal High Court sitting in Port Harcourt, Rivers State has reaffirmed judgement in Suit Number FHC/PH/CS/136/2022 between Cutra International Limited vs China National Petroleum Corporation, upholding the award of $100 million in favour of Cutra against China petroleum firm.

In his ruling delivered on April 24, 2026, the trial judge, Justice Adamu Turakii Mohammed dismissed an application filed by the CNPC seeking to set aside the judgement earlier entered against it on May 23, 2025.

The application to overturn the judgement was filed on October 28, 2025, but the Court found no basis to disturb its previous judgement, thereby affirming the full judgment sum awarded to Cutra.

The dispute centred on the ownership structure and equity participation under an Oil Prospecting Licence (OPL 471) awarded by the Nigerian Federal Government in 2006/2007 to CNPC and its local partner, Cutra.

Under the award and arrangement between the parties, Cutra held a 10 per cent equity interest in the OPL. However, CNPC unilaterally returned the OPL to the federal government without consulting or obtaining Cutra’s consent.

Aggrieved by the action, Cutra approached the court seeking damages for the deprivation of the benefits and entitlements from the oil asset. The court in its earlier judgement ruled in favour of Cutra. In assessing the appropriate damages and compensation payable to Cutra, the Court observed that Cutra’s evidence that the minimum yield from the OPL was valued at $5 billion was not challenged by CNPC.

Relying on the uncontroverted evidence before it, the Court consequently awarded damages in the sum of $100 million in favour of Cutra.

According to the court, “when a Court takes a position on a matter in controversy before it, that Court becomes functus officio with respect to that matter in controversy, and the Court stands and remains bound by the decision.

“It is equally the position of the law that where a trial Court in the course of the proceedings in a matter before it decides on a particular issue or question, it becomes functus officio to revisit that issue or question.”

The development marks a major legal victory for Cutra International Limited. It reinforces the authority of the Nigerian Federal High Court in the determination and enforcement of high-value commercial claims involving foreign corporate entities.

Industry observers expect that attention may now shift toward the enforcement phase of the judgement, particularly given the international dimensions of the dispute and the substantial financial implications arising from the Court’s decision.

The ruling is anticipated to generate significant discussion within legal, financial, and commercial circles, where large-scale cross-border disputes often raise complex questions relating to jurisdiction, contractual obligations, and the enforcement of judgements against foreign companies.