The International Centre for Settlement of Investment Disputes has dismissed claims by an international oil exploration company demanding the sum of $1.5bn from Nigeria over alleged denial in an oil joint venture operation.
The Interocean Oil Development Company and Interocean Oil Exploration Company had instituted the arbitral proceedings seeking the award of $1.5bn damages over alleged removal of its 40 percent ownership in Oil Mining Licence 98 and Oil Processing Licence 275.
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But a three-man arbitration panel, including Professor William Park, Professor Julian D.M. Lew and Justice Edward Torgbor, held that Nigeria has no liability in connection with Claimants’ loss of control over their investment, Pan Ocean.
The allotment of Pan Ocean’s shares was approved by the Corporate Affairs Commission after its extraordinary meeting on 1 and 28 December 2005.
“The Tribunal finds that respondent (Nigeria) has not breached its obligations toward Claimants under Nigerian law or under international law,” the tribunal said.
The tribunal ordered the company to reimburse Nigeria the sum of $660,129.87 of the its share of the arbitration costs, $1, 320, 259.874 incurred in the proceeding.
The Attorney-General of the Federation and Minister of Justice, Abubakar Malami, in a statement on Wednesday by his media aide, Umar Gwandu, Malami, described the judgment as an addition to the multiple success stories recorded in international litigations by the ministry.
