Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,108,031 members, 7,669,579 topics. Date: Thursday, 07 December 2023 at 12:23 PM

US Court rules in favour of NNPC on $2.7bn debt against ESSO, Shell - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / US Court rules in favour of NNPC on $2.7bn debt against ESSO, Shell (242 Views)

Abule-Egba Explosion: Lagos Govt To Meet With NNPC On Compensation For Victims / Thomas John Appointed As Chairman Of NNPC By President Buhari / Shehui Sanni Reacts To Atiku's Plan To Sell 90% Of NNPC If Elected (2) (3) (4)

(1) (Reply) (Go Down)

US Court rules in favour of NNPC on $2.7bn debt against ESSO, Shell by fergie001: 1:43pm On Sep 08, 2019
U.S. Southern District Court of New York has delivered judgment in favour of the Nigerian National Petroleum Corporation (NNPC) against ESSO Exploration and Production Nigeria Limited and Shell Nigerian Exploration and Production Company Limited (collectively ESSO).

This was disclosed in a statement issued by Mr Ndu Ughamadu, the Spokesman for the corporation, on Sunday in Abuja.

It will be recalled that a court hearing was held on February 1, in the protracted litigation arising from the disputes between NNPC and ESSO regarding the implementation of the Production Sharing Contract dated May 21, 1993 covering OPL 209/OML 133.

ESSO referred its claims to arbitration in Nigeria and obtained an Arbitral Award of 1.799 billion dollars on Oct. 24, 2011, with annual interest running at LIBOR plus 4 per cent.

NNPC challenged the Award at the Federal High Court, Abuja, which in May 2012, ordered that the Arbitral Award be set aside.

Notwithstanding the decision of the Nigerian Court, ESSO applied to the United States District Court, Southern District of New York for recognition and enforcement of the Arbitral Award.

NNPC challenged ESSO’s Application on the ground that there was no Award, which the US Court could enforce as a competent Court in Nigeria had since set aside the Award.

NNPC also contended that there was no legal basis for the US Court to exercise jurisdiction over it as it had no presence in the United States, owned no property and does not conduct its businesses therein.

ESSO contended that NNPC is the alter ego of the Federal Government of Nigeria, owned assets in the USA including bank accounts and also conducts businesses in the USA.

ESSO obtained the leave of Court to conduct Jurisdictional Discovery to ascertain if the US Court could assert personal jurisdiction over NNPC.

At the close of the Discovery Procedure, the Court ordered NNPC and ESSO to appear for oral hearing, which was held before Honourable Judge W. H. Pauley on February 1, for parties to canvass their respective positions.

On September 4, the US Court delivered its Judgment by which it upheld the Corporation’s Application to Dismiss ESSO’s Enforcement Application on the ground that a competent Nigerian Court had set aside the underlying Award.

It also directed the Clerk of the Court to terminate and discontinue all motions and processes filed by ESSO in the matter.

“By this development, NNPC has successfully secured the dismissal of ESSO’s application to secure recognition and enforcement of its Arbitral Award valued in excess of US$2,699,405,616 plus interest.

“The effect is that ESSO, who had sought the Order of the US Court to enforce the said Award, has lost the right.

“While ESSO is at liberty to appeal this decision, NNPC is optimistic that its case on appeal is very strong.

“This is a significant decision in the history of this case as the US Court has not only discharged NNPC from any indebtedness to ESSO but also set the stage for NNPC’s pursuit of the challenge of three other outstanding Enforcement Applications filed in the US Court by other PSC Contractors,’’ Ugahmadu said

He also said that the decision of the US Court would lend weight to the effort of NNPC and the PSC Contractors to explore amicable resolution of underlying PSC disputes.

NNPC was represented by the US law firm of Messrs. Chaffetz Lindsey LLP, and Nigerian law firm of Messrs. Streamsowers & Kohn.

Re: US Court rules in favour of NNPC on $2.7bn debt against ESSO, Shell by Simplyleo: 1:47pm On Sep 08, 2019
What a sad piece of news for shildren of 8, anger and frustration. I have no doubt they will soon either tongue lash US or start making their typical aimless noise .

Btw, good one for Nigeria and Nigerians.
Re: US Court rules in favour of NNPC on $2.7bn debt against ESSO, Shell by ORIENTATION101: 1:49pm On Sep 08, 2019
Us court dismissed the case base on jurisdiction , same with fraudulent company PID case. Before they ran to get a yahoo-yahoo judgement in UK.

As for PID case , Nigeria will not pay any penny to any fraudulent company. When investigation is concluded Nigeria will file for appeal and tender evidences of scam and activate the British law that says a country asset cannot be seized by a private entity.
Re: US Court rules in favour of NNPC on $2.7bn debt against ESSO, Shell by NextGovernor(m): 1:58pm On Sep 08, 2019
Just see how they will come out with an article tomorrow on how Buhari administration did this and fought hard on this case. Hahahaha.

Nigeria and Nigerians are always been sentimental with judgements. They will always count this win judgement as the right one and unbiase and same time say loosed judgement against there favour as biased. Lol.

(1) (Reply)

IPOB: Nnamdi Kanu Risks ICC Prosecution, UK Extradition / Police Killed Three Of Our Members During Ashura Procession In Kaduna - IMN / The Price Of Arrogance

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2023 Oluwaseun Osewa. All rights reserved. See How To Advertise. 148
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.