Connect with us

THE NEWS

U.S. court rules in NNPC’s favour in $2.7b suit

Published

on

The United States Southern District Court of New York has delivered a significant judgment in favour of the Nigerian National Petroleum Corporation (NNPC) against ESSO Exploration and Production Nigeria Limited and Shell Nigerian Exploration and Production Company Limited (collectively, ESSO).

The court hearing was held on February 1, this year in the protracted litigation arising from the disputes between NNPC and ESSO regarding the implementation of the Production Sharing Contract dated May 21, 1993 covering OPL 209/OML 133. ESSO referred its claims to arbitration in Nigeria and obtained an Arbitral Award of $1.799 billion on October 24, 2011, with yearly interest running at LIBOR plus four per cent.

NNPC promptly challenged the Award at the Federal High Court, Abuja, which in May 2012, ordered the set aside of the Arbitral Award.  Notwithstanding the decision of the Nigerian Court, ESSO applied to the United States District Court, Southern District of New York for the recognition and enforcement of the Arbitral Award.

NNPC challenged ESSO’s application on ground that there was no award, which the U.S court could enforce as a competent court in Nigeria had since set aside the award.

NNPC also contended that there was no legal basis for the U.S court to exercise jurisdiction over it as it had no presence in the United States, owned no property and does not conduct its businesses therein.

ESSO contended that NNPC is the alter ego of the Federal Government of Nigeria, owned assets in the U.S including bank accounts and also conducts businesses in the U.S.

Esso obtained the leave of Court to conduct Jurisdictional Discovery to ascertain if the U.S court can assert personal jurisdiction over NNPC.

At the close of the Discovery Procedure, the Court ordered NNPC and ESSO to appear for oral hearing, which was held before Honourable Judge W. H. Pauley on February 1, 2019, for parties to canvass their respective positions.

On September 4, this year, the US Court delivered its Judgment by which it upheld the Corporation’s Application to Dismiss ESSO’s Enforcement Application on ground that a competent Nigerian Court had set aside the underlying Award and directed the Clerk of the Court to terminate and discontinue all motions and processes filed by ESSO in this matter.

By this development, NNPC has successfully secured the dismissal of ESSO’s application to secure recognition and enforcement of its Arbitral Award valued in excess of $2,699,405,616 plus interest.

The effect is that ESSO, who had sought the Order of the US Court to enforce the said Award, has lost the right. While ESSO is at liberty to appeal this decision, NNPC is optimistic that its case on appeal is very strong.

This is a significant decision in the history of this case as the US Court has not only discharged NNPC from any indebtedness to ESSO but also set the stage for NNPC’s pursuit of the challenge of three other outstanding Enforcement Applications filed in the US Court by other PSC Contractors.

Also, this decision of the US Court would lend weight to the effort of NNPC and the PSC Contractors to explore amicable resolution of the underlying PSC disputes.

NNPC was represented by the US law firm of Messrs. Chaffetz Lindsey LLP, and Nigerian law firm of Messrs. Streamsowers & Kohn

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

THE NEWS

Breaking: Soldier kills four colleagues in Borno, commits suicide

Published

on

Breaking: Soldier kills four colleagues in Borno, commits suicide

A soldier who is a Corporal of the Nigerian Army serving at the Theatre Command Operation LAFIYA DOLE, Army Super Camp 15, located at Malam Fatori in Borno State, northern Nigeria,  has killed four of his colleagues.

The Witness reports that a statement by the Acting Director of Army Public Relations, Colonel Sagir Musa, confirmed the development, saying that the Nigerian Army soldier later shot himself in the early hours of Wednesday, February 26,

It was learned that two other soldiers of the Nigerian Army were injured from the shooting but are currently in stable condition in hospital in Maiduguri, the capital and the largest city of Borno State in north-eastern Nigeria.

The Acting Director of Army Public Relations said efforts are ongoing to contact the families of our gallant colleagues who paid the supreme price in the line of duty.

“Two of his colleagues were also injured during the incident and are currently in stable condition in our hospital in Maiduguri. Efforts are ongoing to contact the families of our gallant colleagues who paid the supreme price in the line of duty. May their gentle souls Rest In Peace.

“Meanwhile, an investigation into the case has since been instituted to determine the circumstances that led to the unfortunate incident,” Musa said.

Continue Reading

THE NEWS

[BREAKING] Bayelsa: Supreme Court upholds judgement sacking APC’s David Lyon

Published

on

[BREAKING] Bayelsa: Supreme Court upholds judgement sacking APC's David Lyon

The Supreme Court has upheld its judgement which sacked David Lyon and Senator Biobarakuma Degi-Eremienyo of the All Progressives Congress (APC) as the governor-elect and deputy governor-elect of Bayelsa State. The apex court dismissed an application for review of the judgment.

According to Justice Amina Augie who read the judgment, the application lacks merit, adding that the decisions of the court are final.

She added that the applicants failed to point out errors, stating that the judgment is final for all ages.

The apex court judge said the judgment is final in the ‘real sense’ and no court on earth can review the judgment.

“There must be an end to litigation even if we review this judgment, every disaffected litigant will bring similar applications and the finality of Supreme Court judgments will be lost.”

She added that the applications are frivolous and vexatious, and awarded the cost of N10 million against the applicants to be personally paid by their counsel.

Recall the apex court, on February 13, sacked Lyon of the APC barely 24 hours to his inauguration.

A five-member panel of the apex court led by Justice Mary Odili nullified Mr Lyon’s election on the grounds that his deputy, Biobarakuma Degi-Eremienyo, presented false information to the Independent National Electoral Commission(INEC) to aid his qualification for the November 16 governorship election in State.

Subsequently, the court ordered INEC to declare the party with the highest number of lawful votes and geographical spread the winner of the election. The candidate of the Peoples Democratic Party, Douye Diri, was later sworn in as governor.

This was sequel to a suit filed by the candidate of the Peoples Democratic Party(PDP), Douye Diri, against the APC candidates and INEC, seeking the disqualification of the APC deputy governorship candidate.

 

Continue Reading

THE NEWS

Bayelsa: Court to deliver judgment in APC’s request to review Bayelsa judgment

Published

on

[BREAKING] Bayelsa: Supreme Court upholds judgement sacking APC's David Lyon

The Supreme Court has fixed judgment for Wednesday (Today) in the application by the All Progressives Congress (APC) for a review of its judgment in the Bayelsa State governorship dispute.

The apex court has, in its February 13, 2020 judgement, voided the participation of the APC’s candidates in the election on the grounds that its deputy governorship candidate submitted false information to the Independent National Electoral Commission (INEC) about his education credentials.

Continue Reading
Advertisement

Facebook

Advertisement
Advertisement

Trending