A Federal High Court sitting in Port Harcourt has reaffirmed a $100 million judgment against China National Petroleum Corporation (CNPC) in favour of Nigerian indigenous firm, Cutra International Limited, over a disputed Oil Prospecting Licence (OPL) 471.
In a judgment delivered on April 24, 2026, the court dismissed CNPC’s application seeking to overturn an earlier judgment entered on May 23, 2025, in Suit No. FHC/PH/CS/136/2022 between Cutra International Limited and CNPC.
The Chinese oil giant filed the application on October 28, 2025, asking the court to set aside the judgment, but the court held that there was no legal basis to revisit the matter.
The dispute arose from the ownership structure and equity participation in OPL 471, which was awarded by the federal government to CNPC and its Nigerian partner, Cutra International Limited, in 2006/2007.
Under the arrangement, Cutra held a 10 per cent equity interest in the oil block. However, the company alleged that CNPC unilaterally returned the licence to the Federal Government without consulting or obtaining its consent.
Aggrieved by the action, Cutra approached the court, seeking compensation for the loss of benefits and entitlements tied to the asset.
In its earlier judgment, the court ruled in favour of Cutra after finding that evidence presented by the Nigerian firm on the estimated value of the oil block was not challenged by CNPC.
The court noted that Cutra’s claim that the minimum yield from the OPL was valued at $5 billion remained uncontroverted during proceedings.
Relying on the evidence before it, the court awarded damages of $100 million against CNPC.
Dismissing CNPC’s attempt to reopen the case, the court held that it had become functus officio after delivering judgment on the matter.
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 added.
The ruling is seen as a major legal victory for Cutra International Limited and a significant development in Nigeria’s commercial dispute resolution landscape involving foreign corporate entities.
Legal and industry observers say attention may now shift to the enforcement phase of the judgment, given the international dimensions of the dispute and the substantial financial implications of the court’s decision.
