NNPC gets judg­ment from UK court over $310m oil con­tract

Daily Trust - - NEWS - By Daniel Adugbo

A United King­dom Commercial Court in Lon­don has ruled in favour of the Nige­rian Na­tional Petroleum Cor­po­ra­tion (NNPC) in a suit filed by IPCO Nigeria over a dis­pute that arose from a con­tract to build an oil ter­mi­nal in Port Har­court.

IPCO Nigeria is a sub­sidiary of the IPCO Group, a turnkey con­trac­tor and in­vestor in en­ergy in­fra­struc­ture projects.

NNPC, in a state­ment is­sued by its spokesman, Dr. Omar Farouk Ibrahim, ex­plained that the case which stretched for ten years, 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 $150 mil­lion in 2004, to­gether with an­nual in­ter­est run­ning at 14 per cent, a rul­ing which was chal­lenged by NNPC in the Nige­rian courts,” the state­ment added.

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, it said.

The state­ment said 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, as a re­sult, the par­ties agreed in 2009 to ad­journ the en­force­ment pro­ceed­ings and await the out­come of the chal­lenge in Nigeria.

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