A federal high court sitting in Port Harcourt has reaffirmed its earlier judgment awarding $100 million in damages to Cutra International Limited in its dispute with China National Petroleum Corporation over the handling of Oil Prospecting Licence (OPL) 471.
The ruling was delivered in Suit No. FHC/PH/CS/136/2022 between Cutra International Limited and CNPC.
In its decision delivered on April 24, 2026, the court dismissed an application filed by CNPC seeking to overturn an earlier judgment entered against the company on May 23, 2025.
The Chinese oil corporation had filed the application on October 28, 2025, asking the court to set aside the judgment.
However, the court held that there was no legal basis to revisit the earlier ruling and consequently upheld the full $100 million damages awarded in favour of Cutra International Limited.
The dispute stemmed from the ownership and equity participation arrangement tied to OPL 471, an oil prospecting licence granted by the Federal Government of Nigeria in 2006/2007 to CNPC and its Nigerian partner, Cutra International Limited.
Under the agreement, Cutra held a 10 percent equity stake in the oil block.
Court documents indicated that CNPC allegedly returned the oil licence to the federal government without consulting or obtaining the consent of Cutra.
Cutra subsequently filed suit, arguing that the action deprived the company of benefits and entitlements associated with the oil asset.
In its earlier judgment, the court noted that evidence presented by Cutra indicating that the oil block had a minimum yield value of approximately $5 billion was not challenged by CNPC during proceedings.
Based on what it described as uncontroverted evidence, the court awarded $100 million in damages against the Chinese corporation.
In dismissing the fresh application, the court relied on the legal principle of functus officio, stressing that once a court has made a final determination on an issue, it cannot revisit the matter except under recognised legal circumstances.
According to the court, “when a Court takes a position on a matter in controversy before it, that Court becomes functus officio with respect to that matter in controversy, and the Court stands and remains bound by the decision.”
The court further stated that, “where a trial Court in the course of proceedings in a matter before it decides on a particular issue or question, it becomes functus officio to revisit that issue or question.”
Legal observers say the ruling highlights the growing role of Nigerian courts in handling major commercial disputes involving multinational corporations and foreign investors.
The case is also expected to attract attention because of the international implications of enforcing large monetary judgments against foreign corporate entities operating in Nigeria.
