Judiciary

Just In: US arbitration tribunal frees Nigeria of $1.5bn liability

Published

4 years ago

2020/10/07

The International Centre for Settlement of Investment Dispute in the United States of America has relieved Nigeria of a $1.5bn liability in connection with a contract agreement involving two oil firms, the Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami (SAN), said in a statement on Wednesday.

The statement issued on behalf of the AGF by his spokesperson, Dr Umar Gwandu, stated that the tribunal headed by Prof. William Park, had in its decision delivered earlier on Tuesday ruled that Nigeria did not breach any of its obligations in the contract.

It added that the tribunal ordered the two oil firms, Interocean Development Company and Interocean Oil Exploration Company, to pay the Federal Government of Nigeria the sum of $660,129.87 as reimbursement of Nigeria’s share of the arbitration costs incurred in the proceedings.

The statement read in part, “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 statement quoted part of the judgement as reading, “The Tribunal finds no liability on the part of Respondent in connection with Claimants’ loss of control over their investment, Pan Ocean”.