FG Fends Off $1.5bn Liability As US Tribunal Awards $660K Payment To Nigeria

The federal government says it has recorded another judicial success story as a foreign oil company (InterOcean), has been ordered to pay the country about 660,129 dollars as arbitration costs.

The order was given in the United States by the International Centre for Settlement of Investment Dispute led by Professor William Park, as contained in a statement on Tuesday by the Attorney General of the Federation and Minister of Justice, Abubakar Malami SAN, through his Spokesperson, Dr. Umar Jibrilu Gwandu.

In Park’s judgment, “the Tribunal finds no liability on the part of Respondent in connection with Claimants’ loss of control over their investment, Pan Ocean.”

Malami held that among other things, the federal government was also relieved from any liability in its dispute with the oil company.

“The US-Based International Centre for Settlement of Investment Dispute headed by Professor William Park ordered InterOcean to pay the Federal Government of Nigeria Six-hundred and sixty thousand one hundred and twenty nine United State Dollars and eighty seven cents (USD 660,129.87) as reimbursement of its share of the arbitration costs incurred in the proceedings.

“The Tribunal also absolves the Federal Government of Nigeria from any liability maintaining that Nigeria did not breach any of its obligations in the contract agreement with Interocean Development Company and Interocean Oil Exploration Company,” the statement partly read.

According to the statement, the judgement implied that the justice ministry violated no known law as claimed by the oil firm.

“The oil companies that has among its legal team, Mr. Olasupo Shasore, SAN requested, among others, relief from the Tribunal directing the Federal Government of Nigeria, its relevant privies and instrumentalities to pay aggravated damages in an amount to be proven during these arbitral proceedings which the Claimants estimate at being in excess of US$ 1.5 Billion (One Billion Five hundred Million United States Dollars).

“The Tribunal finds that the Federal of Government of Nigeria has not breached its obligations toward Claimants under Nigerian law or under international law,” it stated.

Furthermore, Malami said that the judgment is ” an addition to the multiple success stories recorded in international litigations by the Federal Ministry of Justice.”

“Malami who renewed commitment to patriotically and relentlessly discharge his constitutional mandates in the best interest of the nation and general public said gone was such an era of connivance to deprive the nation of its resources for gratifying ulterior motives of vested interest at the expense of the Nigeria populace,” the statement read.

THE WHISTLER earlier reported that
the Central Bank of Nigeria (CBN) had disclosed that “Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200m when the London Commercial Court ordered the release of the $200m guarantee put in place as security in respect of the execution of the much discredited P&ID $10bn Arbitral Claim.

“The court also awarded a £70,000 cost in favor of Nigeria in addition to an earlier award of £1.5m,” CBN stated.

Malami was also involved in the arbitrary success.