The Chief Executive Officer of Rahamaniyya Oil and Gas Limited, Abdulrahman Bashir, has been given a 10 months jail sentence in the United Kingdom for continuous breaches of Mr Justice Robin Knowles’ order.
Justice Butcher of England and Wales High Court sentenced the Nigerian oil mogul after he was found guilty of breaching multiple orders of the court in a pending suit instituted by Sahara Energy Resources Ltd.
He was ordered to comply with requests for the release of 6,400.69 metric tonnes gas oil to Sahara Energy Resource Ltd or its agent from Rahamaniyya Oil and Gas Ltd, Jetty 6.436181, Ibafon, Kirikiri Waterfront, of Aero Maritime Street, Apapa, Lagos, Nigeria (“the Terminal”).
This was in line with the deal Ultimate Oil and Gas, the trading arm of Rahamaniyya Oil in the Dubai Multi Commodities Centre (DMCC), entered into a deal with Sahara Energy in 2018.
In the signed contract, Ultimate agreed to buy, and Sahara agreed to sell 15,000 metric tonnes in the Vacuum of Gas Oi.
A Collateral Management Agreement (CMA) containing a London arbitration clause was entered into on July 8, 2018 between the two parties and it was further learnt that Rahamaniyya agreed to store the gas oil at its terminal pending payment by Ultimate.
Premium Times reported that Sahara delivered a total of 14,967.159 metric tonnes of gas oil to Rahamaniyya’s terminal in Nigeria and also issued invoices for the gas oil on October 26, 2018 for USD 10,760,728.77.
The payment should have been made by August 29, 2019, but Ultimate defaulted in making necessary payments.
In December 2018, Ultimate and Sahara entered into a settlement agreement in which Ultimate confirmed that the value of gas oil that had been delivered was USD 10,760,728.77, and agreed to make a series of monthly payments for it.
Reports said court records showed that some payments were made, in consequence of which some 8,566.469 metric tonnes of gas oil was released to Ultimate.
Ultimate, however reneged in performing the terms of the settlement agreement in full by making all the payments due.
Various attempts made by Sahara to obtain delivery of the gas oil were said to be futile, leading to the lawsuit which was filed both in Lagos and in the United Kingdom.
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