The United Kingdom Commercial Court in London has ruled in favour of the Nigerian National Petroleum Corporation NNPC in a suit filed by IPCO Nigeria, a subsidiary of the IPCO Group, a key contractor and investor in energy infrastructure projects, over a dispute that arose from a contract to build an oil terminal in Port Harcourt.
A statement signed by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Omar Farouk Ibrahim explained that the case which stretched for a decade initially arose from a dispute following IPCO’s claim that NNPC should bear the cost of variations (alterations to the scope of works in the original construction contract), which caused a 22-month delay to the works.
“Following arbitration proceedings in Nigeria, IPCO was awarded $150m in 2004, together with annual interest running at 14 per cent, a ruling which was challenged by NNPC in the Nigerian courts.
However, since then, IPCO repeatedly sought to enforce the award in England before the conclusion of the proceedings in Nigeria resulting in three reported judgments in the case: IPCO Nigeria Ltd v Nigerian National Petroleum Corporation 2005 EWHC 726 Comm; IPCO (Nigeria) Ltd v Nigerian National Petroleum Corporation 2008 EWHC 797(Comm.); Nigerian National Petroleum Corporation v IPCO Nigeria Ltd [2008] EWCA Civ 1157’’, the NNPC stated.
It was established that during IPCO’s previous attempt to enforce the award, NNPC discovered evidence that IPCO had forged documents relating to the claim and the related arbitration in Nigeria, and as a result the parties agreed in 2009 to adjourn the enforcement proceedings and await the outcome of the challenge in Nigeria. However in a strange twist IPCO again sought to enforce the award in England in 2012.
Delivering his judgment, Mr. Justice Field of the UK Commercial Court ruled that IPCO failed to establish any change of circumstances justifying a further application to enforce the award in whole or part in England, and that it is in Nigeria where the enforceability of the award must be decided.
The post London court favours NNPC over $310m contract appeared first on Nigeria pilot.