Inter Ocean Oil: Again, Nigeria Earns Victory As FG Relieved Of $1.5 Billion Liability, Gains $660K Arbitration Cost

The US-Based International Centre for Settlement of Investment Dispute headed by Professor William Park ordered InterOcean to pay the Federal Government of Nigeria Six-hundred and sixty thousand one hundred and twenty nine United State Dollars and eighty seven cents (USD 660,129.87) as reimbursement of its share of the arbitration costs incurred in the proceedings.

The Tribunal also absolves 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.

A Statement by Dr. Umar Jibrilu Gwandu, Special Assistant on Media and Public Relations, Office of the Attorney General of the Federation and Minister of Justice disclosed this Wednesday.

The oil companies that has among its legal team, Mr. 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 estimate at being in excess of US$ 1.5 Billion (One Billion Five hundred Million United States Dollars).

According to the statement the judgment which was delivered yesterday, the Tribunal finds that the Federal of Government of Nigeria has not breached its obligations toward Claimants under Nigerian law or under international law.

“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.

Commenting on the development, the Attorney-General of the Federation and Minister of Justice, Abubakar Malami,SAN described the judgment as an addition to the multiple success stories recorded in international litigations by the Federal Ministry of Justice.

Malami who renewed 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 Nigeria populace.