The Senate, Wednesday, summoned the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, to brief it on the details of the contracts signed between the Federal Government and the Irish firm, Process and Industrial Developments, P&ID, Limited.
Also asked to appear with the Minister are all the relevant stakeholders, parties to the agreement, including officials of the Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation, NNPC, and professional arbitrators engaged on behalf of the Federal Government.
They are expected to comprehensively brief the Senate 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 economy and security of the nation’s assets at home and abroad.
Resolutions of the Senate were sequel to a motion by the Chairman, Senate Committee on Judiciary, Human Rights and Legal Matters, Opeyemi Bamidele, All Progressives Congress, APC, Ekiti Central.
In the presentation of the motion, Senator Opeyemi said: “My motion is on the need to invite the Minister of Justice and Attorney General of Federation and other relevant stakeholders to brief relevant committees of the Senate on the award of $9.6 billion against the Federal Government of Nigeria, by a United Kingdom Court in the matter of P&ID – Process & Industrial Development Limited versus Federal Government of Nigeria.
“The Senate notes with concern that Nigerians at home and in the Diaspora have become apprehensive while several committees of the Senate have over the last few weeks, received several petitions and other direct and circumstantial information on the ongoing legal imbroglio involving the Ministry of Petroleum Resources and, by extension the Federal Government, and the United Kingdom firm known as Process and Industrial Development Limited, herein after referred to as P&ID.
”The Senate is aware that a commercial court in the United Kingdom in the suit referred to has ruled that the Federal Government must pay the British firm, Process and Industrial Development Limited, a sum of $9.6 billion or have its assets to the tune of that amount forfeited.
“The Senate is further aware that in January 2010, the Ministry of Petroleum Resources, acting on behalf of the Federal Government, 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 tenor 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 ground that Nigeria repudiated its obligation under the terms of the TSPA by defaulting to make wet gas available to it.
”The Senate is alarmed that the UK court decision converted the subsequent arbitrary award into a domestic judgment against the Federal Republic of Nigeria, creating a situation where Nigeria’s asset around the world, particularly in the United Kingdom and the United States of America, risk being taken over by P&ID orbits agents.
“It 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 reiterates that the principal role of the National Assembly is, among others, to undertake oversight of all government ministries, departments and agencies or amend subsisting laws of the Federation of Nigeria, for the proper functioning and good governance of the country which power is derived from the provisions of the Constitution of Nigeria, 1999 as amended.”
Addressing senators on resumption from a long break on the issue, Senate president, Senator Ahmad Lawan, called on the Federal Government to ensure that all issues around the scandalous transactions were resolved quickly in favour of Nigeria.
Lawan said: “Let me also commend the Federal Government for the appropriate response to the $9.6 billion judgment debt against Nigeria, in favour of Process and Industrial Development, P&ID, by a British court.
”The case is another reminder on why we should strengthen our processes and procedures, so that questionable firms would not take advantage of us.
“The Senate is following government’s efforts with keen interest and is hopeful that issues around the scandalous transaction are quickly resolved in favour of Nigeria.”
The Irish firm had secured an arbitration award of $9.6 billion against Nigeria, following its inability to honour the terms of the agreement.
