P&ID's $11B Arbitration Case Against Nigeria Fails in Final Appeal  - The Top Society

P&ID’s $11B Arbitration Case Against Nigeria Fails in Final Appeal 

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The legal battle between Process and Industrial Development (P&ID) and Nigeria has reached its conclusion as P&ID loses its final appeal in an eleven-billion-dollar arbitration case. The case revolves around a failed gas processing project that led to a legal dispute.

In October, the London High Court delivered a judgment that halted the enforcement of damages against Nigeria. The court found that P&ID, a British Virgin Islands-based company, had paid bribes to a Nigerian oil ministry official during the 2010 gas contract and failed to disclose this information during arbitration.

Judge Robin Knowles, who presided over the case, rejected P&ID’s attempt to overturn the October ruling. He affirmed that the damages award should be completely dismissed, emphasizing that the award against Nigeria was obtained through fraudulent means. The judge also discovered that P&ID had paid bribes to Nigerian officials involved in drafting the gas supply and processing agreement.

Further investigation by the judge revealed that P&ID was illegally in possession of Nigeria’s privileged legal documents during the arbitration hearings.

The court concluded that the arbitration awards were not only obtained through fraud but also violated public policy.

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Despite arguments from P&ID’s lawyers, including claims that the documents found in their possession played no role in the initial victory at arbitration, Judge Knowles refused to grant permission to appeal. As a result, P&ID cannot apply for permission from the Court of Appeal.

The dispute originated in January 2010 when P&ID signed a Gas Supply and Processing Agreement with Nigeria to develop a processing plant in Calabar.

However, the deal failed in August 2012, leading P&ID to seek $5.96 billion in compensation through arbitration proceedings. In January 2017, the arbitration ruled in favor of P&ID, ordering Nigeria to pay $6.6 billion with interest. The interest accrued to over $11 billion before the court’s final decision.

Nigeria, alleging fraud in the contract and arbitration award procurement, filed an appeal against the enforcement of the award. The court granted relief to Nigeria in September 2020, and in the October ruling, the judge concurred that the awards were obtained by fraud and contrary to public policy.

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