South Korean KNOC Wins Oil Suit Against Nigeria


Paul Arhewe, Online Editor onlineeditor@independentngonline.com


(With Agency Report)


Korea National Oil Corporation (KNOC) Thursday won a suit against Nigerian Federal government following the verdict of a high court which ruled that President Yar'Adua had overstepped his brief in revoking its two exploration licences.

The KNOC, a South Korean firm, had filed a suit seeking the restoration of two offshore oil prospecting licences granted in 2005 and revoked in January by Nigeria on the ground that the firm had not fully paid the investment pledged.

"The applicant's suit therefore subsists because there is no power conferred on the President to revoke or void the (licences) allocated to it," Abuja Federal High Court judge Abdullahi Mustaphahe said.
Government claims that KNOC lost its right to the licences by failing to pay in full a signing bonus

KNOC lawyer Robert Clarke had said the company paid most of what was due on the licences and had agreed on a production sharing contract with Nigerian National Petroleum Corporation (NNPC) before the licences were withdrawn.
When NNPC cancelled the licences, it cited non-payment of some 231 million dollars which it said KNOC had promised in return for the exploration rights.


KNOC said that amount had already been written off by the former Nigerian government in return for the construction of infrastructure, including a power plant and gas pipelines.

SapeleGuy:

South Korean KNOC Wins Oil Suit Against Nigeria


Paul Arhewe, Online Editor onlineeditor@independentngonline.com


(With Agency Report)


Korea National Oil Corporation (KNOC) Thursday won a suit against Nigerian Federal government following the verdict of a high court which ruled that President Yar'Adua had overstepped his brief in revoking its two exploration licences.

The KNOC, a South Korean firm, had filed a suit seeking the restoration of two offshore oil prospecting licences granted in 2005 and revoked in January by Nigeria on the ground that the firm had not fully paid the investment pledged.

"The applicant's suit therefore subsists because there is no power conferred on the President to revoke or void the (licences) allocated to it," Abuja Federal High Court judge Abdullahi Mustaphahe said.
Government claims that KNOC lost its right to the licences by failing to pay in full a signing bonus

KNOC lawyer Robert Clarke had said the company paid most of what was due on the licences and had agreed on a production sharing contract with Nigerian National Petroleum Corporation (NNPC) before the licences were withdrawn.
When NNPC cancelled the licences, it cited non-payment of some 231 million dollars which it said KNOC had promised in return for the exploration rights.


KNOC said that amount had already been written off by the former Nigerian government in return for the construction of infrastructure, including a power plant and gas pipelines.

AMOUNT WRITTEN OFF BY THE FORMER NIGERIAN GOVERNMENT?

If the above in bold is the Korean company argument, where is the infrastrutures buildings? or is to be constructed after they have found OIL and sell it?

I think this is one of OBJ silly allocation without any consideration by the Korean company maybe except
[b] 'some ghana must go bags or swissie accounts loading' i[/b]s the consideration which is not recognised at law.

I think the Judge may have erred in law(even though I don't have the full facts). Where is the consideration? They seems not to have paid anything for the rights?.

The truth shall continue to prevail. The guilty shall be punished, but the innocent fear no retribution.

Another triumph for due process and the rule of law.