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The Federal High Court in Lagos on Monday upheld a landmark $1.7billion arbitral award in favour of the Nigerian Petroleum Development Co. (NPDC) Ltd against the Atlantic Energy Drilling Concepts Nig. Ltd and Atlantic Energy Brass Development Ltd.
Justice A. Faji dismissed Atlantic Energy’s application to set aside the Arbitral Award of March 5, 2020.
He upheld the submissions of NPDC lead counsel Prof Fabian Ajogwu SAN and granted orders recognising the $1.7bn Arbitral Award as well as for leave to enforce same as a judgment of the Federal High Court.
This landmark decision upholds one of the single largest Awards ever in a Nigerian Arbitration.
Sometime in August 2015, Atlantic Energy, through its lawyer, T. Fagbohunlu SAN, took the NNPC to arbitration for alleged breach of contract.
NPDC in response, filed a counter-claim for funds due to the Federal Government on account of crude oil sales from the Oil Mining Leases (OMLS) 26, 30, 34, 42, 60, 61, 62 and 63 (known as ‘Brass and Forcados assets’) without payment of remittances due.
NPDC also sought the recovery of unpaid net approved cash calls in respect of the OMLs.

On March 5, 2019, the Arbitral Tribunal in agreeing with Ajogwu’s arguments, delivered a landmark Arbitral Award of $1.7bn in the NPDC’s favour.
It ordered Atlantic Energy pay the $1.7bn to NPDC as the value of the 55 per cent crude oil portion of the Federal Government taken and sold by Atlantic but not remitted to NNPC.
Atlantic Energy (Award debtors) sought an Order of Court to set aside the arbitral award delivered in favour of NPDC because the Arbitral Tribunal allegedly misconducted itself by wrongfully assuming jurisdiction over NPDC’s Counter-Claim,
and dismissing their preliminary objection to the said Counter-Claim.

NPDC, at the same time, sought for an Order of Court to recognise and enforce the arbitral award.
In upholding Ajogwu’s submissions,
Justice A. Faji of the Federal High Court, held that NPDC’s Counter-Claim in the Arbitration was distinct in all material respects from the suit referred to by the Award Debtors.
According to the Judge, as rightly argued by Ajogwu,, whilst the claim in suit 701 touched on criminal conversion/ diversion of revenue due to the Federation, the counter-claim to the Arbitration bordered on breach of the
Strategic Alliance Agreement between NPDC and the Award Debtors.

Accordingly, the Court dismissed the Award Debtors’ application to set aside the Arbitral Award.
This landmark decision settled the question of the impact of non-payment of signature fees on lifted crude oil as well as the principles of Unjust Enrichment in Crude oil lifting and recovery.
Furthermore, the significance of this Arbitration to Nigeria, which depends mostly on Crude oil for revenue generation and economic development is enormous for the Nigerian economy, which is heavily dependent on crude oil revenues.
https://t.co/kxvwYLsSPg

More from Law

Hot take: Courts might be able to review the legality of this impeachment, even under current political-question doctrine. Here’s why and how the issue might arise:


Suppose Senate convicts and disqualifies Trump from ever holding federal office. Trump files paperwork to run anyway, but state officials deny his application, citing his Senate impeachment judgment. Trump sues, arguing that the judgment is void.

Normally a legal dispute about a prospective candidates eligibility to run would certainly present a justiciable case or controversy. But are courts bound to accept the Senate impeachment judgment as valid? Maybe not. Here’s why:

According to Article I, “The Senate shall have the sole Power to try all Impeachments.” This is a small amount of judicial power vested in Congress. When trying impeachments, the Senate sits as a court.

The Senate’s judicial power includes the power to decide relevant legal questions that arise, such as what procedures are sufficient to constitute a “trial” w/in the Constitution’s meaning. Such legal determinations are conclusive, as SCOTUS held in Nixon v. United States (1993).
A Call for Help!
1. we have a petition/open letter for the WHO
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2. 372 people signed it but we want to boost it
3. I post link ascomment on related YT videos
Tks @KevinMcH3 for the tip
4. You can help by liking the comments
5. That will increase visibility!


6. Links for YT videos with comments are here
1. China curtails hunt for virus origins
https://t.co/NhcYdtsd2Y
2. China: nearly 500,000 may have been infected in Wuhan
https://t.co/KRUQ5hFrii
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https://t.co/8ah8M8bpiB


4. Gravitas: The 'hidden hunt' for COVID-19 origins
https://t.co/hHhhUqgPYt
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https://t.co/r7A1lkr5li
8. Bats, roadblocks & the origins of coronavirus - BBC
https://t.co/Kh9jacC54t
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