US tribunal orders oil firm to pay Nigeria $660,000

Peter Olaniyi    |   

The Minister of Justice, Abubakar Malami has welcomed the judgment of a U.S.-based tribunal, which ordered InterOcean Oil Company to pay the federal government 660,129 dollars as reimbursement of its share of the arbitration costs.

The  U.S.-based International Centre for Settlement of Investment Dispute headed by William Park ordered InterOcean to pay the Federal Government $660,129.

The tribunal also absolved the Federal Government of Nigeria from any liability maintaining that Nigeria did not breach any of its obligations in the contract agreement with Interocean Development Company and Interocean Oil Exploration Company.

In a statement issued by Umar Gwandu, Special Assistant on Media and Public Relations, Office of the Minister of Justice in Abuja, Malami described the judgment as an addition to the multiple success stories recorded in international litigations by the Federal Ministry of Justice.

Malami, who renewed his commitment to patriotically and relentlessly discharge his constitutional mandates in the best interest of the nation and general public, said gone was such an era of connivance to deprive the nation of its resources for gratifying ulterior motives of vested interest at the expense of the Nigerian populace.

The tribunal held that the Federal Government of Nigeria did not breach its obligations towards the claimants under Nigerian law or under international law.

Reports state  that the oil company that has among its legal team, Olasupo Shasore (SAN) requested, among others, relief from the Tribunal directing the Federal Government of Nigeria, its relevant privies and instrumentalities to pay aggravated damages in an amount to be proven during these arbitral proceedings which the claimants of 1.5 billion dollars.

“The tribunal finds no liability on the part of Respondent in connection with Claimants’ loss of control over their investment, Pan Ocean,” the judgment reads in part.