Process and Industrial Developments Limited (P&ID for
short) is a “briefcase” company seeking
to reap where it sowed nothing. it alleged
a breach of a Gas Supply and Processing Agreement it entered into with the
Federal Government of Nigeria sometime in January 2010
.
P&ID never
performed the contract and never alleged to have made any investment or
expenditure towards its performance. It however commenced arbitration at the
London Court of International Arbitration alleging a breach of the contract.
The process leading to the award of the contract itself remains unclear as
there is no evidence that due process was followed in its purported award. The
contract was also not approved by the Federal Executive Council or the
president.
The arbitration proceedings were in two parts; the
tribunal was first to determine whether Nigeria was liable and if there is a
finding on liability, the tribunal would proceed to assess the quantum of
damages.
Nigerian legal team at the liability phase was led by Olasupo Shasore,
SAN who vigorously contested the claims on liability. In its decision on
liability delivered on 17 July 2015, the tribunal found Nigeria liable. Shasore
saw strong legal grounds to challenge the award and Justice Buba of Federal
High Court Lagos set aside the London award.
The Federal High Court also agreed
with Shasore that this was a Nigerian matter and on Shasore’s application, made
an order restraining the tribunal and the parties from continuing the
proceedings.
For reasons yet undisclosed, FGN changed its legal team
replacing Shasore with Chief Bolaji Ayorinde, SAN, OFR of Adebayo Chambers and
the Federal Ministry of Justice.
Chief Ayorinde led FGN’s legal team in the
proceedings on the amount of damages leading to the award of over $6Billion
plus interest against Nigeria. Nigeria did not pursue the Federal High Court
case which analysts say could have stopped the hearing. The award was delivered
on 31 January 2017.
The tribunal was made up of Lord Hoffman, Sir Anthony Evans
and Chief Bayo Ojo, SAN. Although Chief Ojo did not agree with the majority
decision, his dissent is insignificant to the damages that is now being sought
to be enforced against FGN. In the judgment of the court in Great Britain
leading to the judgment of $9Billion, Nigeria is represented by Curtis
Mallet-Prevost, Colt & Mosle and Mr. Harry Matovu QC.
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