$242m Petroleum Diversion Claim: UBA Takes On Vitol, Four Others, Secures Asset Freeze Against Vitol

United Bank for Africa Plc has secured an interim court order restraining dealings with Vitol SA’s assets and funds up to $242 million amid allegations that petroleum cargoes consigned to the bank were released to other parties.

Justice K. A. Jose of the Lagos State High Court granted the interim preservative orders last Thursday following an application argued by UBA’s lead counsel, Bode Olanipekun, SAN.

The dispute centres on petroleum products that UBA alleges it financed but never received, despite holding original shipping documents endorsed to its order.

Although the application named Vitol and four shipping companies, the quoted ruling expressly limited the relief granted to the second respondent, Vitol.

“Prayers 1–3 are granted as prayed against the 2nd Respondent only,” Justice Jose ruled.

The Mareva injunction preserves assets pending further proceedings.

In an affidavit supporting the application, UBA’s Group Head of Recoveries and Remedial Management, Anthony Chilaka, stated that the bank issued a letter of credit in favour of the Swiss energy trader to facilitate petroleum products transactions.

According to the bank, the products were shipped to Nigeria, with the vessels’ masters issuing bills of lading covering the cargoes.

UBA alleged that Vitol subsequently endorsed the documents “to the order of” the bank and handed over the originals, giving it the right to take possession of the products upon completion of the voyages.

But the bank said the cargoes never reached it.

“The applicant has not been given possession of the gasoil despite completion of the voyage,” Chilaka stated in the affidavit.

UBA alleged that the petroleum products were instead released or diverted for the benefit of other parties, leaving the bank without the cargoes covered by its shipping documents.

In the substantive proceedings, the bank is seeking to establish liability against Vitol and the vessel owners for alleged conversion, misrepresentation and negligence arising from the non-delivery.

The application also cited 34 financial institutions and public agencies, including commercial banks, merchant banks, microfinance banks, the Nigerian Ports Authority and the Nigeria Customs Service.