The High Court of the Federal Capital Territory in Abuja has delivered judgment in favour of Halkin Exploration and Production Limited (Halkin E&P) in a swimsuit introduced by the corporate in opposition to Eunisell Limited over a disputed contractual provision.
The dispute centred on Clause 10.4 of a service settlement between Halkin E&P and Eunisell, which the courtroom dominated was unenforceable, having discovered it to be a penalty clause designed to terrorise the claimant.
Under Clause 10.4 of the settlement, Halkin E&P was required to pay a late cost cost of 0.5 per cent day by day, equal to roughly 177 per cent yearly on a compound curiosity foundation, on excellent funds.
The provision resulted in Eunisell claiming thousands and thousands of {dollars} in accrued expenses, reportedly exceeding ten occasions the underlying debt.
In its judgment, delivered by Justice S.B Belgore on October 22, 2026, the courtroom held that “Clause 10.4 of the Service Agreement between Halkin Exploration and Production Limited and Eunisell Limited dated 20th January 2022, which imposes an annual default fee of 177% (equivalent of 0.5% per day), is null, void, and of no legal effect whatsoever.”
In addition, the courtroom dominated that it was “setting aside, quashing, nullifying and invalidating all late payment/default invoices, bills and/or assessments, howsoever described, predicated on Clause 10.4 of the Service Agreement between Halkin Exploration and Production Limited and Eunisell Limited dated 20th January 2022 issued by the Defendant against the Claimant.”
Commenting on the ruling, counsel to Halkin E&P, Chikaosulu Ojukwu, SAN, stated “This determination is a victory for the rule of regulation and vindicates the constant place maintained by our shopper, Halkin E&P, that the impugned clause in the settlement was opposite to public coverage and subsequently unenforceable.
“Our client maintains that Eunisell Limited sought to use that clause to secure an unjustified financial windfall. The defendant Eunisell Limited withdrew from the oil well in the middle of the night, without notice, causing damage to the wellhead, according to our client. Our client will pursue a US$50 million claim against Eunisell Limited through the appropriate legal proceedings. This is a classical case of get rich quick” .
