FG vs P&ID case: AGF asks foreign investors, friends to disregard online report

By Vivian Okejeme Abuja

The Attorney General of the Federation(AGF) Abubakar Malami, SAN, has called on foreign friends and investors to disregard an online report against litigation between Processes and Industrial Developments Ltd (P&ID) vs Federal Government of Nigeria.
According to Malami, the purported report had that ‘’if Nigeria fails to pay the Judgment fine before February 15, P & ID can enforce the award against Nigeria by seizing its assets in the United Kingdom’’.
He maintained that the FG is making concerted efforts through legal and diplomatic channels to resolve the issues in contention between the parties.
The Minister of Justice hinted in a statement yesterday that, the dispute that led to the Arbitration between FGN and P .& ID, rooted from a 20 year Gas Supply and Processing Agreement(GSPA) entered in 2010 between FGN (through the Ministry of Petroleum Resources) and P & ID.
He explained that the agreement was in respect of an accelerated gas development project in Nigeria’s OMLs 67 and 123, adding that P&lD never began the construction of the project facility although it alleges it incurred about $40 Million in preliminary expenses.
However, he said that 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.
Explaining further, Malami informed that upon the Award, P & lD commenced recognition and enforcement proceedings of the arbitration award against FGN in March 2018 in both the United Kingdom (“UK”) and the United States of America (the “United States”).
Following the huge arbitration award, the current administration took positive steps in challenging the award, thus, the FGN is duly represented in the proceedings in the United States and the UK by the foreign Law Firm of Curtis, Mallet-Prevost, Colt & Mosle LLP,
He thereby, called on the general public to be duly guided as he assured that the federal government is vigorously defending its interests in the United Kingdom.