18 Dec GEPLAW REPORT ISSUE 30B
Although the foremost advantage of arbitration proceedings is confidentiality, arbitration cases of high import hardly ever remain secret due to connected court proceedings, parties involved and the press. Hence, the biggest international arbitration proceedings and subsequent awards granted are highly visible in, and heavily analysed by the media.
Recently, the attention of both local and international media has beamed on the drawn-out arbitral battle between Process & Industrial Developments Ltd (P&ID) and the Ministry of Petroleum Resources of the Federal Republic of Nigeria (FRN) which commenced in 2012 and finally culminated in the recent judgment of the High Court of Justice of England and Wales. In August 2019, the United Kingdom Senior Court, granted an order for the enforcement of the final award to P&ID in Process & Industrial Developments Ltd (P&ID) v. the Federal Republic of Nigeria (FRN); a sum which had risen well above $9.6 billion due to accrued interest, since the final award was first granted in 2017.
This development, stemming from a failed Gas Supply and Processing Agreement (GSPA) executed between said parties in 2010, has raised numerous questions from legal, political, and other quarters. Many seek an explanation on how the progressive gas project which would have generated a considerable increase in national power generation, broke down without either party fulfilling its obligations as stipulated in the…continue reading