Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home General News

Respite for Nigeria as Exxon Mobil and Shell lose $1.8 billion arbitration award  

Bamidele Samuel Adesoji by Bamidele Samuel Adesoji
September 5, 2019
in General News, Politics
No foreign exchange for food and fertilizer importers - Buhari, Gas project, Buharinomics, Buhari, metric, FG okays N100 billion for the completion of Kano Free Trade Zone , Nigeria saved N670 billion from Petrol Importation in half year 2019  , The Chicago Boys of Nigeria, Buhari signs Production Sharing Contract (PSC) Amendment Bill into law , Nigeria generates N876.09 billion in 9-month, as revenue shortfall poses threat 
Share on FacebookShare on TwitterShare on Linkedin

Exxon Mobil Corporation and Royal Dutch Shell Plc have both lost their bids to revive a $1.8 billion arbitration award against Nigeria.  

According to Reuters, a U.S District Judge, William Pauley, rejected Exxon Mobil and Shell’s move to revive the dispute, citing public policy and due process considerations in deciding not to enforce the October 2011 award against Nigerian National Petroleum Corp (NNPC), which was subsequently set aside by courts in Nigeria. 

The details: Essentially, the case stemmed from a dispute over a 1993 contract to extract oil near Nigeria’s coastline. Also, Exxon Mobil and Shell claimed that the award had grown to $2.67 billion (interest inclusive) since November 2018.  

[READ MORE: NNPC clears $833.57 million debt owed to Exxon Mobile’s subsidiary]

According to the judgement delivered by Pauley in a 50-page document, though the court has the inherent authority to deliver judgement in appropriate fashion, the case filed by Exxon and Shell lacked merit.  

Pauley wrote, “While this court may have inherent authority to fashion appropriate relief in certain circumstances, exercising that authority to create a $1.8 billion judgment is a bridge too far.

“Exxon and Shell executed a contract in Nigeria with another Nigerian corporation containing an arbitration clause requiring any arbitration to be held in Nigeria under Nigerian law, and it then sought to confirm the award in Nigeria.” 

Details in the court papers show that the 1993 contract anticipated that Exxon and Shell affiliates would invest billions of dollars to extract oil from the Erha field, about 60 miles (97 km) off Nigeria’s coast, and share profits with NNPC. 

Meanwhile, the affiliates, Esso Exploration and Production Nigeria Ltd and Shell Nigeria Exploration and Production Co Ltd, accused NNPC of unilaterally “lifting” more oil than was contractually allowed, at the request of the Nigerian Government, depriving them of billions of dollars of oil. 

Exxon Mobil kicks: Following the judgement, Exxon spokesman Todd Spitler said the Irving, Texas-based company disagreed with the decision and was evaluating its next steps. On the other hand, Shell and its lawyers did not respond immediately to requests for comment. 

Meanwhile, NNPC’s legal representative, Cecilia Moss, stated that NNPC was very pleased with the decision, and was always confident that there was no basis for a U.S. court to confirm the award.  

[READ ALSO: ExxonMobil finds a foe in Femi Falana following the firm’s N684 billion debt mess]

In the meantime, this constitutes a relief for Nigeria as the country is still battling the over $9 billion (N3.5 trillion) judgment involving the country and a British Firm – Process and Industrial Developments Ltd (P&ID). 

 

Related

Tags: $1.8 billion oilExxon MobilOn the MoneyShell

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Access Bank
Bankers Committee
Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Zenith CEX
Kwakol Markets
First bank





    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Crestron, the Rolls Royce of home automation is taking the LucreziaBySujimoto to the next level
    • Gaming and education has a new name: RoboApe (RBA) is taking the crypto world by storm
    • The SWOOTs capitalization declines w-o-w by N23 billion

    Follow us on social media:

    Recent News

    Crestron, the Rolls Royce of home automation is taking the LucreziaBySujimoto to the next level

    Crestron, the Rolls Royce of home automation is taking the LucreziaBySujimoto to the next level

    May 22, 2022
    Gaming and education has a new name: RoboApe (RBA) is taking the crypto world by storm

    Gaming and education has a new name: RoboApe (RBA) is taking the crypto world by storm

    May 22, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com