Connect with us

Economy

NNPC Wins $2.7bn Debt Suit at U.S. court

Published

on

Share

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).

The Corporation disclosed this 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. (NAN)
ENO/HAS

Business News

DMO Offers N150bn Sukuk Bond for Subscription at N1, 000 Per Unit

Published

on

Share

The Debt Management Office (DMO) on Tuesday offered for subscription, Ijarah Sukuk valued at N150 billion.

According to a statement by the DMO, the Sukuk is issued by Federal Government of Nigeria (FGN) Roads Sukuk Company PLC, on behalf of the Federal Government.

It said that the Sukuk were offered at N1,000 per unit, subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.

“Rental payment is made half-yearly, and bullet repayment is done on the date of maturity.

“Proceeds will be used solely for the construction and rehabilitation of key road projects and bridges across the six geopolitical zones of the country,” the DMO said.

It added that the Ijarah Sukuk was backed by the full faith and credit of the Federal Government.

“It qualifies as securities in which trustees can invest under the Trustee Investment Act.

“Qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.

“To be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, ” it said.

It added that the Ijarah Sukuk was classified as liquid asset by the Central Bank of Nigeria (CBN) and certified by the Financial Regulation Advisory Council of Experts of the CBN.

The News Agency of Nigeria (NAN) reports that the Sukuk is a Sharia-compliant instrument that represents the interests of the owner in an asset or pool of assets.

It ensures that every financial activity is backed by real economic activity, is usually linked to specific infrastructure projects.(NAN)

Continue Reading

Economy

Umahi congratulates Mbah, urges opposition parties to stop distraction in Enugu

Published

on

Share

…..Umahi congratulates Mbah

Minister of Works, Chief Dave Umahi, has congratulated Gov. Peter Mbah on his victory at the Enugu State Governorship Election Petition Tribunal, even as he called on opposition parties to stop distracting the governor.

Umahi, who is an All Progressives Congress (APC) stalwart, said it was not about party affiliation but about the quality of the individual chosen by the people of the state to lead them.

The minister, who said this when he inspected the collapsed bridge at the Enugu end of the Enugu-Port Harcourt expressway, advised the opposition in the state not to waste their time contesting Mbah’s ‘divine and people’s mandate’.

He also said that Mbah’s initiative to commence the reconstruction and dualisation of Enugu-Abakaliki road up to the Ebonyi boundary was another display of people-driven leadership by a private sector person in governance.

“I am happy that you came from the private sector. There is a high hope, especially with the steps you have taken so far.

“They are in tandem with President Bola Tinubu’s steps and I pledge to support you. There must be a change; we must reset the country.

“I want to publicly say, while congratulating you on the tribunal victory, that whoever is taking you to court must stop wasting his time as you are clearly the people’s choice and for good reasons.

“So we will continue to support and pray for you and I urge whoever is distracting you that they should understand the steps of God and know that your emergence is divine and we are very proud of you.

“I know Gov. Mbah as a very successful private person and he is going to bring it to bear in the governance of this state.

“I also believe that what he is bringing to the table will rub off positively on Enugu State, the entire South-East states,” he said.

The minister also commended Mbah for ending sit-at-home in the state, describing it a major step forward for the Igbo nation.

“Let me also thank you for being able to courageously stop sit-at-home in Enugu State.

“It is a major thing you have done for the Igbo people and for the country,” he said. (NAN

…..Umahi congratulates Mbah

Continue Reading

COVER

FG Plans Full Production Capacity  Revamp  for DICON  – Matawalle

Published

on

Share

 

By Tony Obiechina, Abuja 

The Minister of State for Defence, Dr Bello Muhammed Matawalle, has charged the staff and engineers of the Defence Industry Corporation of Nigeria (DICON) to improve on their performances as Federal Government plans to revamp and scale up the industry to a full production capacity.

In a statement by the Acting Director of Press and Public Relations of the Ministry, Attari Hope in Abuja on Saturday, Matawalle stated this during his maiden visit to DICON facilities in Kaduna State.

 

In an address to  staff of the industry, he said “as the technical personnel of this promising industry, your professionalism and dedication to work is paramount in sustaining the vision and growth of this industry.

We will ensure you get adequate funding to achieve this.”

The Director General of DICON, Maj Gen AE Edet, lauded the Minister of State for his words of encouragement and assured hm of DICON’s unwavering commitment to its vision and objective which it was set up.

As part of his maiden tour of DICON, the Minister of State visited the DICON’s Special Equipment Factory, Ballistic Helmet Production Unit, Tailoring Unit, amongst others.

Continue Reading

Read Our ePaper

Top Stories

NEWS6 hours ago

TETFund pledges support to reduce unemployment

Share The Executive Secretary, Tertiary Education Trust Fund (TETFund),  Sonny Echono, has pledged support for measures that will improve employment...

NEWS6 hours ago

Chairman tasks new CEOs on leveraging expertise for delivery

Share The Chairman, Uniccon Group, Dr Chuks Ekwueme has tasked newly appointed Chief Executive Officers (CEOs) to leverage their expertise...

NEWS6 hours ago

Police declare Owodunni Ibrahim, `Primeboy’, wanted in connection with Mohbad’s death

Share Police in Lagos State on Wednesday declared one Owodunni Ibrahim popularly known as “Primeboy’’, wanted in connection with the...

NEWS6 hours ago

Turkey promises to partner NAF, transfer defence technology

Share The Turkish Ambassador to Nigeria, Mr Hidayet Bayraktar, has expressed the readiness of Turkey to deepen the existing defence...

Health6 hours ago

Bauchi, Gombe, Jigawa move against medical quackery

ShareBauchi, Gombe and Jigawa governments have adopted proactive regulations and monitoring mechanisms to end medical quackery to fasttrack quality healthcare...

SPORTS6 hours ago

Morocco, Five others across Three continents to host 2030 World Cup matches

ShareMorocco, Spain and Portugal have been named hosts of the 2030 FIFA World Cup, while Uruguay, Argentina and Paraguay will...

Health6 hours ago

Reps task health ministry, institutions on mental health

ShareThe House of Representatives has urged the Federal Ministry of Health and other health institutes to ensure the establishment of...

InfoTech6 hours ago

Female engineers teach elderly citizens new tech trends to bridge generational gap

Share The Association of Professional Women Engineers of Nigeria (APWEN), Lagos Chapter, on Wednesday organised a mentorship training for elderly...

Entertainment/Arts/Culture6 hours ago

Badagry Int’l Film Festival holds Oct. 25, generates Three Thousand film entries – Organizers

ShareThe organizers of the Badagry International Film, Cultural and Sports Festival (BIFIF) on Wednesday said the maiden edition of the...

security6 hours ago

Police seek closer working relationship with NAF in Enugu

Share The Police Command in Enugu State on Wednesday sought the strengthening of the existing mutually beneficial working relationship between...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc