Yeah, Addax is the major cause of the breach of contract. Thing is we are not privy to all the details of the contract. The P&ID guys are claiming the FG didn’t do enough to ensure the project took off. So they are suing for breach of contract, loss of expected revenue and loss of already invested funds.

9jatriot:
I have gone through the inside story, from what I can see, if there was a breach of contract, it was between P&ID and Addax, is that not how these contracts are run? The NNPC is supposed to be like a witness of some sort?

Andoanka was a member of the cabal who shieled president Yaradua from nigerians, after it was established the president's signature was forged, saying that Yaradua can rule from anywhere in the world. He later fled abroad to escape prosecution.

Not really, Addax is a foreign company so they are trying to rope Nigeria into their nonsense. If your link is correct then it should be Nigeria suing the two of them (Addax and P&ID) for breach of contract.

Kai, see as they don see Nigeria finish, you promised to build a facility, another company promised to give you some part of the required resources yet they had the audacity to take us to court.

Nigeria should take this case to Justice Okon Abang's court on Monday and summon them from that their UK that does not know whether they will be in the EU or not to come and explain why they have refused to build a facility they promised to build more than 9 years after.

blujoi:
Yeah, Addax is the major cause of the breach of contract. Thing is we are not privy to all the details of the contract. The P&ID guys are claiming the FG didn’t do enough to ensure the project took off. So they are suing for breach of contract, loss of expected revenue and loss of already invested funds.

blujoi:
You are welcome buddy. SPV’s are legal and it’s regularly used by investors all the time. My point in all this is, 1) The project was not a scam. It was meant to benefit Nigeria 2) We are in this situation due to complacency and incompetence by Nigerians in government at all levels. 3) The P&ID guys decided to cash out on our incompetence. I used the JV agreements IOC’s have with the Nigerian government which they never get to fulfill their own part. The IOC’s decided to come up with the PSC concept since the FG will never do their own part, making us lose millions daily.

The project was a scam! Scams have some aura of legitimacy to make it believable.
I read the link and it's very laughable. There are so many inconsistencies in the report, that it is beyond belief, a sane judge can order Nigeria to pay $1.

Let me just quote the most absurd one;

In 2006 , former President Olusegun Obasanjo conceived the idea of building gas facilities that would supply gas to power stations across the country to improve power supply as part of his National Economic Empowerment and Development Strategy, NEED.

The power stations were never built as $16 billion was allegedly spent on the power sector with nothing to show.

P & ID, an engineering firm registered in a tax haven in British Virgin Island BVI, boasting a 30-year experience in managing engineering projects in Nigeria formally approached the Federal government with a proposal on August 7, 2008, submitted to the late President Umaru Yar’adua to build a proposed gas plant in Calabar.

Meaning it was P&ID approached the FG and not that the FG went to Ireland to call them.

Only dubious companies with lots to hid go to tax havens to register.

So the company's record of performance is only in Nigeria?

On 21 July 2006 , P &ID (Nigeria) Ltd was registered to serve as its operating company within the country, which was an affiliate to P & ID.

I thought they said they had 30 year experience in Nigeria? We're they operating illegally before 2006? So they registered immediately Obasanjo conceived the idea of building gas facilities that would supply gas to power stations across the country in 2006?

In the build-up to submitting the proposal, P & ID limited had carried out an extensive two-year scale of feasibility studies from 2006, involving the purchase of licenses for the technology required to operate the gas stripping plant, propylene plant, the production of detailed engineering drawings and its internal project management costs.
The firms include CB & I Lummus Technology Group in New Jersey, KRAN Developments in Johannesburg and ABB Limited in the UK which it claimed to have spent $29 million for their services during the feasibility stage.

Who send them work? Licences for what exactly? How can you say you spent $29 million when you have no contract with the government or anybody?

In October 2008, P & ID made its presentation at the Ministry of Petroleum Resources with the Minister of State(Gas), Emmanuel Odusina at the instruction of the former President, late Umaru Yar’ Adua.

They did feasibility studies in 2006 but made presentation to the Ministry of Petroleum Resources in 2008, I know understand o.

I don tire. The whole contract is a joke. You guys should read the whole report yourself and have some laugh.

God bless you.

wirinet:

The project was a scam! Scams have some aura of legitimacy to make it believable.
I read the link and it's very laughable. There are so many inconsistencies in the report, that it is beyond belief, a sane judge can order Nigeria to pay $1.

Let me just quote the most absurd one;

The power stations were never built as $16 billion was allegedly spent on the power sector with nothing to show.



Meaning it was P&ID approached the FG and not that the FG went to Ireland to call them.

Only dubious companies with lots to hid go to tax havens to register.

So the company's record of performance is only in Nigeria?



I thought they said they had 30 year experience in Nigeria? We're they operating illegally before 2006? So they registered immediately Obasanjo conceived the idea of building gas facilities that would supply gas to power stations across the country in 2006?



Who send them work? Licences for what exactly? How can you say you spent $29 million when you have no contract with the government or anybody?



They did feasibility studies in 2006 but made presentation to the Ministry of Petroleum Resources in 2008, I know understand o.

I don tire. The whole contract is a joke. You guys should read the whole report yourself and have some laugh.

seunmsg:


Do you even understand the procedures stipulated in the public procurement act to be followed before awarding such a contract? The AGF as at when the contract was signed is telling you that the FEC did not approve the award of the contract and you are here shouting that we should go and pay. You want your country to pay some dubious Irish for a contract that wasn’t even validly awarded?

Even if you hate the president, must you hate your country? Every reasonable Nigerian should be concerned about the criminal intention behind the contract. The fact that our law was violated in the process leading to the award says it all. This is the time to get patriotic and drop the silly APC vs PDP mentality that has eaten deeply into the brains of some of you. Nigeria will not pay that silly company and their corrupt collaborators any $9billion.

Honestly, when comments of some people on this platform, I just shake my head in disgust.

I don't know if it's pure stupidity, hatred for Buhari or hatred for Nigeria.

A contract was illegally awarded and all you have to say is that the Govt should go and pay?

Thank you for enlightening the foolish ones in our midst.

U guys are the problem of Nigeria as always licking white man ass

FarahAideed:
Shut up and go pay them their money, UK courts don't know PDP or APC , all they know is Nigeria .. You people think you can just keep breaching contracts any how ko

alezzy13:


Bless you jare.

thx....some just dont understand that their are more dangerous enemies than themselves....

9jaRealist:


Yes, YOU Nigerians should care about it...
But it makes NO DIFFERENCE to the arbitration or judgment.

So long as the signatories are authorized persons...
Issues of your internal “corporate governance” process cannot be visited on an external party.
>

....

we shall see if nigerian juristiction mean nothing to the rest of the world....

shock....!!....ipob is still a proscribed group in nigeria till toady...!!

shock....!!

Perfect solution to what?

You need to understand the dynamics of gas flaring. Although some gas flaring is a necessity, the gas market (export and domestic) has evolved to the extent that the big oil and gas companies are repositioning to become gas companies.

So the current realities would have made fulfilling the contracts term counterproductive to any IOC that signed up or guaranteed the P&ID contract.

However, I still doubt the capacity of Addax back then given that they're still young comparatively in the Nigerian space and just at the back of a new acquisition.

The contract no gel at all. Some people knew something and wanted to cash on it.

blujoi:
Let me give you a little background. The Nigerian government had planned to reduce gas flares by the IOC’s. Gas flares are wasted gas which occurs during exploration and production activities by the IOC’s. The plan was to capture this flared gas and pipe it to a gas gathering facility where it will be processed and supplied to the independent gas plants. Addax was already producing in one of the OML’s around the Cross River area. It was decided that the first phase of the gas treatment and gathering project would take place using the gas flared from the Addax operation. On paper it’s a perfect solution, but unfortunately the major facilitator of the company that was going to do the project died. This is a case of incompetence on the Nigerian side and the guys in P&ID decided to cash in on our incompetence.

Someone need to learn more about JVs and PSCs. The PSCs run for offshore assets don't even favour the FG. FG and the IOCs are always working ways to sort out the counterpart funding issues, hence cash calls that the govt also defaulted in before PMB administration is now clearing them under low oil price regime.
What's been proposed for the JV set up now is the IJVC (an independent JV company).

blujoi:
You are welcome buddy. SPV’s are legal and it’s regularly used by investors all the time. My point in all this is, 1) The project was not a scam. It was meant to benefit Nigeria 2) We are in this situation due to complacency and incompetence by Nigerians in government at all levels. 3) The P&ID guys decided to cash out on our incompetence. I used the JV agreements IOC’s have with the Nigerian government which they never get to fulfill their own part. The IOC’s decided to come up with the PSC concept since the FG will never do their own part, making us lose millions daily.

The thing has scam written all over it, but I am wondering wasn't the so called P&ID supposed to sue Addax rather than the FG if they are claiming a breach of contract?

Secondly, would it have been more appropriate to use a Nigerian court? Any idea?

athorello:
Perfect solution to what?

You need to understand the dynamics of gas flaring. Although some gas flaring is a necessity, the gas market (export and domestic) has evolved to the extent that the big oil and gas companies are repositioning to become gas companies.

So the current realities would have made fulfilling the contracts term counterproductive to any IOC that signed up or guaranteed the P&ID contract.

However, I still doubt the capacity of Addax back then given that they're still young comparatively in the Nigerian space and just at the back of a new acquisition.

The contract no gel at all. Some people knew something and wanted to cash on it.

Learn? I worked upstream for XX years. You just repeated what I just said, '' I used the JV agreements IOC’s have with the Nigerian government which they never get to fulfill their own part. The IOC’s decided to come up with the PSC concept since the FG will never do their own part, making us lose millions daily."'

I likened the situation to the IOC's and the FG as regards JV cash calls, because its the same reason that led to this P&ID situation. Complacency, weak internal controls and general irresponsibility on the Nigerian government part.

If the IOC's had applied the JV arrangement to fund the development of offshore assets, they would never meet their schedules. Who doesn't know that the top hierarchy of DPR, NAPIMS,NNPC are just a bunch of incompetent fellows who got there through quota system. The real professionals are relegated to the background.

athorello:
Someone need to learn more about JVs and PSCs. The PSCs run for offshore assets don't even favour the FG. FG and the IOCs are always working ways to sort out the counterpart funding issues, hence cash calls that the govt also defaulted in before PMB administration is now clearing them under low oil price regime.
What's been proposed for the JV set up now is the IJVC (an independent JV company).