Reports reaching the desk of Africa Today News, New York has it that the Process and Industrial Development (P&ID) has lost its final appeal against Nigeria in an eleven-billion-dollar arbitration case which was filed in the UK.
The London High Court’s October ruling, which stopped the enforcement of damages for a failing gas processing plant, was challenged by the P&ID.
Recall that in October, the British Virgin Islands-based corporation was found to have bribed a Nigerian oil ministry official regarding a 2010 gas contract. This information was withheld from Nigeria when the company brought Nigeria to arbitration over the deal’s collapse.
Judge Robin Knowles ruled against P&ID, rejecting their request for the matter to be remanded for arbitration and upholding the damages award’s total rejection.
Judge Knowles had on the 23rd of October ruled in favour of Nigeria in the enforcement of a $11bn Process & Industrial Developments (P&ID) Limited arbitration award.
According to the judge, the award against Nigeria by the company was obtained by fraud.
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The judge had found out that P&ID paid bribe to Nigerian officials who were part of drafting of the gas supply and processing agreement in 2010.
Also discovered by the Judge was that P&ID was illegally in possession of Nigeria’s privileged legal documents during the arbitration hearings.
Nigeria had urged the court to set the award aside, saying that some individuals in the case were being tried for money laundering and graft.
But after listening to the arguments by lawyers to P&ID which included that the documents found in their possession played no role in its initial victory at the arbitration, the Judge on Thursday refused to grant the permission to appeal.
P&ID cannot apply for permission from the Court of Appeal.
Africa Today News, New York recalls that in January 2010, P&ID, a Virgin Islands-registered company founded by two Irish business partners, signed a Gas Supply and Processing Agreement (GSPA) with Nigeria to develop a processing plant in Calabar, the Cross River State capital but the deal failed in August 2012 and the company sought a $5.96bn compensation from Nigeria with arbitration proceedings against the country at the London Court of International Arbitration.
In January 2017, the arbitration said Nigeria breached the contract and ordered the country to pay the company $6.6bn with interest starting from May 2013. Before the verdict, the interest fixed at seven percent ($1m daily) had accumulated to over $11bn.
Subsequently, Nigeria filed an appeal against the enforcement of the award and the court granted the relief sought by the country in September 2020. The Nigerian side argued that there was enough evidence that the contract and the arbitration award were procured by fraud.
The Nigerian side thereby urged the court to set the award aside, saying that some individuals in the case were being tried for money laundering and graft.
In his October ruling, the judge not only agreed that the arbitration awards were obtained by fraud but also that the manner that they were procured were contrary to public policy.