Oil Firm Asks Court to Set Aside Interim Orders, Questions Legality of Administration

Wale Igbintade

Eroton Exploration and Production Limited has launched a fresh legal challenge to stop the execution of court-issued interim orders that placed the oil and gas company under administration.

Through its lawyers, Dr. Joseph Nwobike SAN, leading Collins Ogbonna, of Osborne Law Practice, Eroton has asked the Federal High Court in Lagos to stay all actions arising from interim ex parte orders made on January 20 and 29, 2026, pending determination of its applications challenging both the legality of the court’s orders and its jurisdiction over the matter.

The company has filed three separate applications: a Motion on Notice to set aside the interim orders and restrain their execution; a Notice of Preliminary Objection challenging the court’s jurisdiction; and a substantive motion seeking a stay of execution and injunctions to preserve the status quo.

Together, these filings aim to suspend the administration process until the court resolves questions about its authority to hear the case.

The dispute stems from proceedings initiated by the Lagos State Internal Revenue Service (LIRS), which prompted the court to issue the interim orders and appoint Mr. Amala Umeike, an insolvency practitioner, as Administrator of Eroton.

Following the orders, Umeike issued notices to management, including a letter dated February 6, 2026, convening a management meeting for February 11 at Stren & Blan Partners in Lagos.

Eroton, however, contends that the Federal High Court lacks jurisdiction to entertain the suit or make the interim orders.

In filings dated February 9, 2026, the company argued that the orders were issued without full and frank disclosure of material facts, and that the initiating party is not a juristic entity capable of seeking administration under Sections 450 and 868 of the Companies and Allied Matters Act, 2020.

In an affidavit sworn by Felix Deckon, Senior Litigation Officer at Osborne Law Practice, Eroton stated that the interim orders have disrupted operations and impaired its ability to meet financial obligations.

Deckon described the company as an indigenous oil and gas producer that operated OML 18 in the Niger Delta between 2015 and 2023, achieving significant growth and holding a Petroleum Prospecting Licence valid until 2038.

The company is seeking orders restraining LIRS, the Administrator, and over 40 other parties, including commercial banks, regulatory authorities, and security agencies, from acting on the interim orders.

It also wants the court to cancel actions already taken, including the administrator’s February 6 letter, related newspaper publications, and to prevent the proposed management meeting.

Eroton argued that once jurisdiction is challenged, the court must first determine that issue, and that any further action without resolution would prejudice the company’s rights.

Nwobike emphasised that the court’s inherent powers allow it to reverse actions already taken, prevent abuse of process, and preserve judicial integrity.

No hearing date has yet been fixed for the motions.