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A Federal High Court in Lagos will decide on December 10,
whether the Department of Petroleum Resources (DPR) can lawfully
regulate if or how oil and gas firms can disengage their
workers.

image image

Justice Nicolas Oweibo set the case down for judgement after
parties adopted their respective processes.

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The suit was filed by an oil and gas lawyer, Temilolu Adamolekun
against the Minister of Petroleum, Department of Petroleum
Resources (DPR) and Attorney-General of the Federation as first to
third defendants/respondents.

Adamolekun told the court that the Petroleum Minister made
Regulations 15A Petroleum (Drilling and Production) (Amendment)
Regulations 1988 to the effect that holders of oil mining lease,
license or permit must seek his approval to remove any worker from
his employment and seeks to enforce the regulation through the
Guidelines for the release of staff in the Nigerian oil and gas
industry 2019, published by the DPR.

Adamolekun in adopting his process prayed the court to quash the
regulation on the ground that it contravened the provisions of
national assembly enactments on employees and employers dispute
which is the sole responsibility of National Industrial Court.

But counsel to the minister of Petroleum Resources and
Department of Petroleum Resources (DPR) Mr Adebayo Ologe opposed
him.

Ologe, filed a preliminary objection, praying the court to
strike out the suit for lack/want of jurisdiction, lack of locus
standi to sue and/or lack of reasonable cause of action

In his June 5, statement of claim, Adamolekun had contended that
the regulations and guidelines being subsidiary laws and procedural
rules have clearly gone outside the relevant subsidiary law, which
is the Petroleum Act, 2004.

The regulations and guidelines, he argued, violate the principle
of separation of powers between the legislative, executive and
judicial arms of government.

“There is no law that makes the powers of the 1st and 2nd
defendant to be an exception to the sanctity of the doctrine of
privacy of contract,” he said.

He averred further that “In the wake of the dreaded COVID-19
which has resulted in the crash in crude oil prices, several oil
and gas firms including clients of the applicant are taking major
decisions such as downsizing their staff strength to enable them
survive these trying times.”

He prayed the court for a declaration that the Regulations 15A
and the Guidelines are not grounded /founded on the provisions of
the Petroleum Act 2004 and the 1999 Constitution.

“A declaration that by virtue of Section 254 of the
Constitution, the first and second defendants lack the powers to
adjudicate and determine the rights of employers and their
employees in relation to their employment contracts…and that such
power is completely vested in the National Industrial Court.

“An order that the provisions of the Regulations and the
Guidelines for the release in the Nigerian oil and gas industry
2019, made pursuant to the regulations are void to the existent of
their inconsistency with the constitution.

“An order of perpetual injunction restraining the defendants
from enforcing the provisions of Regulations 15A Petroleum
(Drilling and Production) (Amendment) Regulations 1988 and the
Guidelines for the release in the Nigerian oil and gas industry
2019.”

A Federal High Court in Lagos will decide on December 10,
whether the Department of Petroleum Resources (DPR) can lawfully
regulate if or how oil and gas firms can disengage their
workers.

image image

Justice Nicolas Oweibo set the case down for judgement after
parties adopted their respective processes.

image

The suit was filed by an oil and gas lawyer, Temilolu Adamolekun
against the Minister of Petroleum, Department of Petroleum
Resources (DPR) and Attorney-General of the Federation as first to
third defendants/respondents.

Adamolekun told the court that the Petroleum Minister made
Regulations 15A Petroleum (Drilling and Production) (Amendment)
Regulations 1988 to the effect that holders of oil mining lease,
license or permit must seek his approval to remove any worker from
his employment and seeks to enforce the regulation through the
Guidelines for the release of staff in the Nigerian oil and gas
industry 2019, published by the DPR.

Adamolekun in adopting his process prayed the court to quash the
regulation on the ground that it contravened the provisions of
national assembly enactments on employees and employers dispute
which is the sole responsibility of National Industrial Court.

But counsel to the minister of Petroleum Resources and
Department of Petroleum Resources (DPR) Mr Adebayo Ologe opposed
him.

Ologe, filed a preliminary objection, praying the court to
strike out the suit for lack/want of jurisdiction, lack of locus
standi to sue and/or lack of reasonable cause of action

In his June 5, statement of claim, Adamolekun had contended that
the regulations and guidelines being subsidiary laws and procedural
rules have clearly gone outside the relevant subsidiary law, which
is the Petroleum Act, 2004.

The regulations and guidelines, he argued, violate the principle
of separation of powers between the legislative, executive and
judicial arms of government.

“There is no law that makes the powers of the 1st and 2nd
defendant to be an exception to the sanctity of the doctrine of
privacy of contract,” he said.

He averred further that “In the wake of the dreaded COVID-19
which has resulted in the crash in crude oil prices, several oil
and gas firms including clients of the applicant are taking major
decisions such as downsizing their staff strength to enable them
survive these trying times.”

He prayed the court for a declaration that the Regulations 15A
and the Guidelines are not grounded /founded on the provisions of
the Petroleum Act 2004 and the 1999 Constitution.

“A declaration that by virtue of Section 254 of the
Constitution, the first and second defendants lack the powers to
adjudicate and determine the rights of employers and their
employees in relation to their employment contracts…and that such
power is completely vested in the National Industrial Court.

“An order that the provisions of the Regulations and the
Guidelines for the release in the Nigerian oil and gas industry
2019, made pursuant to the regulations are void to the existent of
their inconsistency with the constitution.

“An order of perpetual injunction restraining the defendants
from enforcing the provisions of Regulations 15A Petroleum
(Drilling and Production) (Amendment) Regulations 1988 and the
Guidelines for the release in the Nigerian oil and gas industry
2019.”

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