The Federal High Court in Lagos has authorized Petrolex Oil & Gas Limited to advertise its petition to wind up Energy Link Infrastructure Limited (ELI) due to an unpaid debt of $13,837,235.98. This debt relates to two charter party agreements for the transportation of crude oil, under which Petrolex provided barges to ELI, a subsidiary of Eroton Exploration & Production.
Justice Akintayo Aluko granted the order on May 23, 2025, after Petrolex demonstrated sufficient grounds for winding up under the Companies and Allied Matters Act, 2020. Petrolex claimed ELI repeatedly failed to pay within seven days of invoicing, accruing interest at LIBOR plus 2 percent. After persistent defaults, Petrolex terminated the agreements in October 2022 and issued multiple statutory demands, all of which were ignored by ELI.
The court noted that ELI’s counter-affidavit admitted owing a lesser amount, which the court treated as a debt admission. ELI’s failure to respond to demands was also considered an implied admission. Additionally, ELI’s defense was struck out because it was sworn to by the company’s lawyer, violating professional conduct rules.
Petrolex must now publish the winding-up petition in national newspapers and report the costs to the court. The main hearing is scheduled for September 25, 2025. Meanwhile, ELI has sought to halt the process through an injunction and a stay of execution, and has filed an appeal at the Court of Appeal.
In a related case, Petrolex is pursuing ELI for $4.59 million in vessel hire fees, 20 million in damages, and 2 million in legal costs. Petrolex alleges ELI withheld payment and refused to release four vessels, disrupting its business. The court dismissed ELI’s request for arbitration, ruling no dispute existed since ELI acknowledged the debt and ignored demands. The trial began March 10, 2025, and was adjourned to July 8, 2025, after ELI’s counsel failed to appear.
