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Abuja High Court Rules in Favour of Halkin E&P Over Eunisell
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Published 10/24/2026 7:41:13 AM
Abuja High Court Rules in Favour of Halkin E&P Over Eunisell – THISDAYLIVE
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 suit brought by the company against Eunisell Limited over a disputed contractual provision.
The dispute centred on Clause 10.4 of a service agreement between Halkin E&P and Eunisell, which the court ruled was unenforceable, having found it to be a penalty clause designed to terrorise the claimant.
Under Clause 10.4 of the agreement, Halkin E&P was required to pay a late payment charge of 0.5 per cent daily, equivalent to approximately 177 per cent annually on a compound interest basis, on outstanding payments.
The provision resulted in Eunisell claiming millions of dollars in accumulated charges, reportedly exceeding ten times the underlying debt.
In its judgment, delivered by Justice S.B Belgore on October 22, 2026, the court 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 court ruled 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, said “This decision is a victory for the rule of law and vindicates the consistent position maintained by our client, Halkin E&P, that the impugned clause in the agreement was contrary to public policy and therefore 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” .
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