Follow Us on Google
Kenneth Udeh, Abuja
The Nigerian Senate has asked the Minister of Justice and Attorney General of Federation, Mr Abubakar Malami, to appear before it in order to explain the award of $9.6 billion against the Federal Government by a United Kingdom court in the case between Process & Industrial Development Limited and Nigeria.
The Senate gave the directive Tuesday at the resumption of plenary after its annual recess.
This was contained in a motion moved by Senator Opeyemi Bamidele, Committee Chairman on Judiciary, Human Rights and Legal Matters,
Bamidele, while briefing the Senate on the issue, decried the conversion of the subsequent arbitrary award into a domestic judgement against the Federal Government.
He said: “The Senate is aware that in January 2010, the Ministry of Petroleum Resources, acting on behalf of the Federal Government of Nigeria, executed a gas supply processing agreement with P&ID whereby Nigeria was to supply zero cost natural gas to P&ID through a pipeline to be constructed by the Nigerian National Petroleum Corporation to P&ID processing facility.
“The Senate further notes that under the terms of the TSPA, which had a tenure of 20 years from the date of first supply of wet gas, P&ID had an obligation to process the wet gas and deliver the derivative to the Federal Government free of charge for power generation while taking any other residual liquid itself at no cost.
“The Senate further notes that based on the facts of the case, P&ID served a notice of arbitration on the Federal Government in 2012 on the grounds that Nigeria repudiated its obligation under the terms of the TSPA by defaulting to make wet gas available to it.”
The Senate, he said is “alarmed that the UK court decision converted the subsequent arbitrary award into a domestic judgement against the Federal Republic of Nigeria, creating a situation where Nigeria’s assets around the world, particularly in the United Kingdom and the United States of America, risk being taken over by P&ID orbits agents.
“The Senate is pained that the damages awarded to P&ID are manifestly excessive, exorbitant, punitive and a big threat to the economic well-being and security of Nigeria.
“The Senate is deeply concerned that the issues arising from the default aforesaid as well as the consequential arbitration, court proceedings and the ensuing award against Nigeria have thus far been concealed from the Senate and the entire National Assembly.
“The Senate, accordingly, resolves to invite the Hon Minister of Justice and Attorney General of the Federation to in the company of other relevant stakeholders, including officials of the Ministry of Petroleum Resources and professional arbitrators engaged on behalf of the Federal Government of Nigeria in this regard to comprehensively brief the Committees on Judiciary, Human Rights and Legal Matters, Petroleum Resources (Upstream and Downstream), Gas Resources and Power on the details of the 2010 contract with P&ID as executed, reasons for the default as well as the handling of resultant negotiations, arbitration, court proceedings and steps being taken to resolve the matter in the overall best interest of the Nigerian economy and security of the nation’s assets at home and abroad.”
Senator Albert Bassey representing Akwa-Ibom North East, while raising a defence against the judgement made reference to 2008 Gas Master Plan Act.
He cited Section 7 of the Act, which outlined the procedures to engage in gas projects.
He said: “This agreement was consummated sometime in 2010 and I chaired the last Senate committee on gas resources.
“As at 2008, there was a law that was developed and enacted by the National Assembly to backup and protect the gas master plan.
“Section 7 of that act states clearly the procedures of the engagement of projects of this nature.
“The Ministry of Petroleum Resources had no right whatsoever because they have no wet gas on the basis of that law and by the act of gas arbitration in Nigeria to act as the supplier of the gas and the one who needs the gas.
“Section four of that law is clear and so far no mention has been made to that law in any of these arguments.
“The ICRC Act of 2005 states clearly in Section 3, that ‘no Federal Government ministry, agency, cooperation or body shall give any guarantee letter of comfort or undertaking in case of any concession agreement made pursuant to this act except with the approval of the Federal Executive Council.
“On the basis of these two acts made by the National Assembly, I don’t think that there is any need for us to overlook this motion and the issues involved based on the fact.”
