Nigeria: Arbitration Tribunal Awards Govt $1.69bn Over Dispute On Brass, Forcados Assets
An Arbitral Tribunal sitting at the Lagos Court of Arbitration has awarded the federal government a whopping $1.69bn in a dispute between the Nigerian Petroleum Development Company (NPDC) Limited and Atlantic Energy Drilling Concepts Nigeria Limited and Atlantic Energy Brass Development Ltd.
The landmark award in favour of the government came just as reports revealed that the protracted legal battle between a British firm, Process and Industrial Developments Limited (P & ID) and the Nigerian Government has taken a turn for the worst as the foreign firm, which won a staggering judgment, now worth $9 billion against Nigeria is trying to confirm the award in courtrooms in the United States and London, which would allow it (P&ID) to start seizing Nigerian assets in the U.S. and the U.K.
The arbitral proceedings in Nigeria was instituted by the claimants, Atlantic Energy Drilling Concepts Nigeria Limited and Atlantic Energy Brass Development Limited) on August 15, 2016, against the NPDC.
In resolving the dispute in favour of NPDC, the Arbitral Tribunal dismissed Atlantic Energy's claims and awarded the sum of US$1,690,900,391.39, US$200,000 and N1,500,000 as costs in favour of NPDC.
It directed that the amount be paid within 21 days from the date of the Award for crude oil lifted from OMLs 26, 30, 34 and 42 (Forcados Assets) and OMLs 60, 61, 62 and 63 (Brass Assets).
The tribunal affirmed all the submissions of the lead counsel to NPDC, Professor Fabian Ajogwu (SAN) of Kenna Partners, who held that Atlantic Energy and its sister companies were indebted to NPDC for their failure to perform their financial obligations under the respective Strategic Alliance Agreements (SAAs).
Chika Amanze-Nwachuku and Davidson Iriekpen with Aagency Report