SAN FRANCISCO, October 08, (THEWILL) – The International Centre for Settlement of Investment Dispute has relieved Nigeria of $1.5b liability and awarded an arbitration cost of $660,000.
The Tribunal Chaired by Professor William Park ordered InterOcean to pay the Federal Government of Nigeria $660,129.87 as reimbursement of its share of the arbitration costs incurred in the proceedings.
The oil companies had requested among others, relief from the Tribunal to direct the Federal Government of Nigeria, its privies and instrumentalities to pay aggravated damages in an amount to be proven during the arbitral proceedings which the Claimants estimate at being in excess of US$ 1.5 Billion.
In a statement on Wednesday by the Special Assistant on Media to the Attorney General of the Federation and Minister of Justice, Dr. Umar Jibrilu Gwandu said the tribunal absolved Nigeria of any liability.
“The tribunal finds no liability on the part of the respondent in connection with claimants’ loss of control over their investment, pan-ocean”, the statement said.
The tribunal further absolved Nigeria of any breach of obligations in the contract agreement with Interocean Development Company and Interocean Oil Exploration Company under the Nigerian law or under international law.
IODC and IOEC had in their complaint, claimed that the promoter of their parent company, Impex Limited – Dr. Vittorio Fabbri, invested, sometimes in the 1990s, in Nigeria’s oil and gas industry through Pan Ocean, which resulted in a joint venture, ownership, and operation of Nigerian Oil Mining Lease 98 (“OML 98”) and Oil Prospecting License 275 (“OPL 275”).
They claimed that in the mid-1980s, the Board of Pan Ocean made up of three directors: Dr. Fabbri, Dr. Festus Fadeyi, and Mr. Herbert Rooks. Fabbri, they claimed, was later made the Managing Director of Pan Ocean, who only performed executive duties but held no ownership rights in the company.
They further claimed that Fabbri died intestate on September 1, 1998 and that shortly after his death, Dr. Fadeyi, allegedly acting with the connivance of some Nigerians, assumed ownership of Pan Ocean and effectively excluded them in the running of its affairs.
The oil companies requested among others, relief from the Tribunal to direct the Federal Government of Nigeria, its privies and instrumentalities to pay aggravated damages in an amount to be proven during the arbitral proceedings which the Claimants estimate at being in excess of US$ 1.5 Billion.
In its judgment, the tribunal, comprising of Prof. William W. Park (as President), Prof. Julian D.M. Lew and Hon. Justice Edward Torgbor, upheld the counter arguments put up by Nigeria’s legal team to the effect that Nigeria is without any blame in the alleged takeover of Pan Ocean.
It held: “The tribunal finds no liability on the part of Respondent in connection with Claimants’ loss of control over their investment, Pan Ocean. The Tribunal finds that respondent (Nigeria) has not breached its obligations toward Claimants under Nigerian law or under international law.
“The tribunal hereby dismisses Claimants’ claims for damages and for restitution. The tribunal hereby dismisses claimants’ claim to be reinstated as the beneficial owner of the 40% participating interest in OML 98.
“The tribunal hereby orders claimants to pay USD 660,129.87 to respondent as reimbursement of its share of the arbitration costs incurred in these proceedings. All other claims are dismissed.”
Attorney General of the Federation and Minister of Justice, Abubakar Malami described the judgment as an addition to the multiple success stories recorded in international litigations by his ministry. He further reiterated his commitment to patriotically and relentlessly discharge his constitutional mandates in the best interest of the nation and general public.
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