In this special report, Davidson Iriekpen, Tobi Soniyi and Obinna Chima, examine the genesis of and collapse of the failed gas to power deal between an Irish firm, Process and Industrial Developments Limited, and the Ministry of Petroleum Resources, on behalf of Nigeria, which gave birth to the raging $9.6 billion arbitral award and recent UK enforcement judgment in favour of the company
The matter became more pronounced when a hedge fund managed company, VR Capital Group, which had knowledge of the matter, in March this year, took as much as 25 per cent stake in P&ID. Besides, the EFCC found that there was collusion between some officials of the Ministry of Petroleum Resources and P&ID to defraud the country.
On Monday, Vice President Yemi Osinbajo, a learned silk and professor of Law, lead a legal team to meet with a British lawyer, believed to have represented Nigeria in the enforcement proceedings in the US and UK, to find a way out of the logjam.
THISDAY gathered that the key players in the P&ID deal included the late Minister of Petroleum Resources, Dr. Rilwan Lukman, who as the Honorary Advisor on Energy and Strategic Matters to the Yar’Adua, ensured that the deal received the attention of the late president. According to the agreement, the initial volume of gas was about 150 million cubic feet of gas per day, which would be ramped up to about 400 million cubic feet per day during the 20-year period.
It said: “Since the commencement of the arbitration, P&ID has repeatedly made clear to Nigerian leadership that it is open to a reasonable settlement offer, and Nigeria’s leaders have repeatedly failed to make one. Even after the arbitration tribunal ruled in favour of P&ID, the Buhari administration would not pay the award or make a reasonable settlement offer. As a result, P&ID now is asking the U.S. and U.K. courts for permission to enforce the award.
But on the advice of the former Attorney General of the Federation, the federal government opted for an amicable settlement with P&ID. Thereafter, Shasore applied two weeks later to the Federal High Court in Nigeria, which issued a 3-page order in 2016, setting aside and/or remitting for further consideration or part of the liability award.
In its final award on 31st January, 2017 but released on 10th February, 2017 the tribunal awarded the claimant the sum of $6.597 billion plus interest at the rate of seven per cent, from 20th March 2013.
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