P&ID: FULL JUDGMENT: Court grants Nigeria extension of time to challenge $10billion arbitration claim

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The judgment is based on applications by Nigeria for an extension of time to bring challenges under sections 67 and 68(2)(g) of the Arbitration Act 1996.

THE FEDERAL REPUBLIC OF NIGERIAMARK HOWARD QC, PHILIP RICHES QC and TOM PASCOE for the Claimant____________________: This judgment was handed down by the judge remotely by circulation to the parties’ representatives by email and released to BAILII. The date and time for hand-down was 10:30 AM on 4 September 2020.These are applications by the Federal Republic of Nigeria for an extension of time to bring challenges under sections 67 and 68 of the Arbitration Act 1996 .

Following the hearing, P&ID submitted a Supplementary Note to comment on new evidence which it said had only now come to its attention, in particular a letter dated 5 June 2020 from Nigeria’s Attorney General and Minister of Justice, Mr Abubakar Malami SAN, to President Buhari. P&ID contended that the letter strongly supported the case it advanced at the hearing. On 21 August Nigeria sent a Note in response, together with the eighth witness statement in the proceedings from Mr Malami.

“3.1.6…We are therefore persuaded the studies, technology licencing fees and engineering designs that formed the basis of P&ID’s presentation to the Federal Ministry of Petroleum Resources were, in fact, ours… “we are willing to fund, from our own resources, the entire US$700,000,000 for the gas processing facilities on land and we are also willing, if necessary, to participate in all or part of the financing of the gas gathering offshore portion of the project…”The following year there was correspondence and meetings between P&ID and members of the technical committee of the Ministry, among whose members were Dr M M Ibrahim and Mr Taofiq Tijani.

Just over a fortnight later, on 18 December 2009, Ms Grace Eyanena Taiga, legal director of the Ministry, sent a note to Dr Lukman advising him to sign the GSPA with P&ID. She wrote: “Subject to your comments to the contrary, I advise that HMPR [the Minister] signs these Draft Agreements to ensure a leap forward for Short Term Gas operations in the country as directed by Mr President.

On 14 May 2010 Mr Quinn wrote as chairman of P&ID to the incoming group managing director of the Nigerian National Petroleum Corporation , Nigeria’s state oil corporation. Mr Quinn requested assistance with the negotiations with Addax Petroleum, who were to provide the flared wet gas for the project.

Mr Olasupo Shasore SAN was appointed as counsel for Nigeria in the arbitration. Mr Shasore was a former Attorney General of Lagos State, author of a textbook on Nigerian arbitration and a past President of the Lagos Court of Arbitration. He worked at a law firm, Ajumogobia & Okeke.

 

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