A tribunal sitting at the Lagos Court of Arbitration has awarded over $1.69bn in favour of the Nigerian Petroleum Development Company (NPDC) Limited in the arbitration between Atlantic Energy Drilling Concepts Nig Ltd and Atlantic Energy Brass Development Ltd and the NPDC.
The arbitral proceedings was instituted by the Claimants (Atlantic Energy Drilling Concepts Nig. Ltd and Atlantic Energy Brass Development Ltd) on August 15, 2016, with the NPDC as counter-claimant.
In its award in favour of NPDC, the arbitral tribunal dismissed Atlantic Energy’s claims and awarded $1,690,900,391.39, US$200,000 and of N1,500,000 (as costs) in favour of NPDC by the claimants within 21 days from the date of the Award for crude oil lifted from OMLs 26, 30, 34 and 42 (Forcados Assets) and OMLs 60, 61, 62 and 63 (Brass Assets).
The tribunal affirmed all the submissions of Lead Counsel to NPDC, Professor Fabian Ajogwu, SAN, FCIArb of Kenna Partners that Atlantic Energy was indebted to NPDC for failure of Atlantic Energy and Atlantic Brass to perform their financial obligations under the respective Strategic Alliance Agreements (SAAs). NPDC had entered into several Strategic Alliance Agreements with Atlantic on April 20, 2011, May 25, 2011 and 2012 for the development and production of hydrocarbon resources.
SOURCE: dailytrust.com.ng
