The Federal Government on Wednesday dismissed as misleading certain online reports about an arbitral award secured against the Federal Government by a foreign from.
The Attorney General of the Federation and Minister of Justice, Abubakar Malami, SAN, made this known while addressing journalists at a press conference in Abuja.
Malawi (SAN) said the report grossly misrepresented facts of the ongoing litigation.
Recall that series of online publications had alleged that P&ID has simultaneously commenced recognition and enforcement proceedings of the Arbitral Award against the Federal Government in a United Kingdom
commercial Court.
But setting the record straight at the press conference, Malami was quoted as saying that the dispute that led to the arbitration between the Federal Government and P&ID over 20 years Gas Supply and Processing Agreement (GSPA) arose before the advent of the Buhari’s administration.
According to him, the GSPA processing agreement entered in 2010 between FGN through the Ministry of Petroleum Resources and P&ID was in respect of an accelerated gas development project in Nigeria OMLs
67 and 123.
Malami alleged that P&ID never began the construction of the project facility but was now alleging that it incurred about $40 million in preliminary expenses.
He said, “The Arbitral Tribunal on 31st January 2017 rendered its final award against the Ministry of Petroleum Resources in the sum of US$6.597 billion together with pre-award interest at the rate of 7% per annum effective from 20th March 2013 and post award interest at the same rate till date of payment.
“Upon the award, P&ID commenced recognition and enforcement proceedings of the arbitration award against FGN in March 2018 in both the United Kingdom and the United States of America.
“In view of the huge arbitration award, the current administration took positive step in challenging the award, thus, the FGN is duly represented in the proceedings in the United States and the United
Kingdom by the foreign law Firm of Curtis, Mallet-Prevost, Colt & Mosle LLP.
While dispelling a rumour bordering on asset seizure in the United Kingdom, Malami explained further that a clerk’s entry of default sought against the Federal Government by P&ID on the 5th June 2018 was successfully set aside by the federal government.
In the meantime, the federal government has assured Nigerians of its foreign counsel’s commitment to effectively defend her interests in the said litigation, saying efforts is also being made to resolve the
issue in contention between parties diplomatically.
