EMMANUEL NWELEDUM, Port Harcourt
A Federal High Court sitting in Port Harcourt has dismissed an application by China National Petroleum Corporation (CNPC) to set aside a $100 million judgment awarded to Nigerian firm, Cutra International Limited.
CNPC had approached the Court on 28 October 2025, to overturn a judgment against it in Suit No. FHC/PH/CS/136/2022, which went in favour of Cutra. But the court held that there was no legal basis to disturb its previous judgment on May 23, 2025, thereby affirming the full $100 million award in favour of Cutra International Limited.
The Friday’s judgement brought a definitive end to a long-running dispute which centered on the ownership and equity structure of Oil Prospecting Licence (OPL) 471, awarded by the Federal Government in 2006/2007 to CNPC and its local partner, Cutra.
Under the arrangement, Cutra was said to have held a 10% equity interest in the licence. Cutra alleged that CNPC unilaterally returned the OPL to the Federal Government without consultation or consent, thereby depriving it of anticipated benefits from the asset.
In its earlier judgement in May 2025, the court had found in favour of Cutra. In assessing damages, it noted that Cutra’s evidence valuing the minimum yield from OPL 471 at $5 billion was unchallenged by CNPC. Relying on that uncontroverted evidence, the court awarded $100 million in damages to Cutra.
Delivering the Friday, April 24, 2026 ruling, the court emphasized the principle of functus officio, stating that once a court has decided a matter in controversy, it stands and remains bounded by that decision.
The ruling sends a strong signal about the judiciary’s approach to post-judgment applications seeking to reopen concluded matters without compelling legal justification.
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 court said.
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.
Legal and industry analysts expect attention to now shift to the enforcement phase, given the cross-border nature of the case and its substantial financial implications.
The judgment is likely to generate further discussion within legal, financial, and energy circles on issues of jurisdiction, contractual obligations, and the enforcement of Nigerian court decisions against international corporate entities.
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