NIMASA to NASS: Nigeria secured $1-7bn arbitral award over missing crude
…says $5m professional fee paid to legal team for 10yr retainership
The Nigerian Maritime Administration and Safety Agency (NIMASA) said the lawsuits it instituted on behalf of the Federal Government against the International Oil Companies (IOCs) over Nigeria’s stolen crudes and unremitted funds has so far yielded over $1.69 billion arbitral award to the Government of Nigeria.
The agency in publication yesterday disclosed that the lawsuits were on the instruction Attorney-General of Federation in 2013.
The publication titled Senate Enquiries on NIMASA’s Payment of $5million Legal Fee for $12billion Missing Crude Recoveries without Results note, “The Agency is also aware that an arbitral award was also obtained against one of the oil companies in favour of the FGN (NNPC/ NPDC) in the sum of $1.69 billion as well as got recognition and enforcement order in the Judgment in favour of the FGN (NNPC/ NPD in Suit No. FHC/L/CS/947/2019 – Nigerian Petroleum Development Co. LTD V Atlantic Energy Drilling Concepts Nigeria Ltd & ANOR on the basis of KPMG forensic report.”
It further disclosed that in 2013, the Attorney – General of the Federation and Minister of Justice in a letter on November 29th, 2013, conveyed to NIMASA the approval of the President of the Federal Republic of Nigeria, dated November 19, 2013, for the engagement of technical experts and legal team to provide intelligence gathering based tracking of Nigeria’s hydrocarbon and also recover revenue lost by the country.
“In furtherance of realizing the objective, the Attorney – General of the Federation and Minister of Justice in that letter of November 29th, 2013, conveyed to the Agency, the President’s approval of the appointment of a legal team, retained to provide legal services and representation for and in relation to the intelligence-based tracking and gathering of global movement of Nigerian hydrocarbon and recovery of revenue lost by the Federal Government.”
NIMASA disclosed that on January 24th, 2014, it conveyed the approval of the president to the legal team/retained counsel of their collective appointment/engagement as conveyed to the Agency by the Attorney General of the Federation and Minister of Justice.
“Consequently, the Federal Government of Nigeria, represented by the Agency, by a retainership agreement, retained the services of a legal team comprising five law firms with three Senior Advocates of Nigeria (SANs) and other lawyers as well as a technical team. The current Attorney-General under his hand, increased the legal team to seven law firms to work with the technical team based in Houston United States to prosecute the matters in court. The effective date of the appointment of the legal team was January 29th, 2014, covering an initial period of 10 years,” the NIMASA document sighted by our correspondent stated.
It added that the legal team was paid professional/ legal start-off fee of $5, 000,000 (N741,904,761.28 at an exchange rate of N164/$ as of the date) which formed part of the legal fees and costs due to the legal team and deductible from the payment due to the legal team/retained counsel upon the conclusion of the project.
NIMASA noted that the legal team had filed several suits which are at various stages, both at the Federal High Court and the Court of Appeal. Some of the suit pending at the Federal High Court and the Court of Appeal (Lagos Division) are as follows:
SUIT NO. FHC/L/CS/318/2016 – Federal Government of Nigeria V Chevron Nigeria LTD & ANOR
SUIT NO. FHC/L/CS/359/2016 – Federal Government of Nigeria V Total E & P Nigeria LTD
SUIT NO. FHC/L/CS/339/16 – Federal Government of Nigeria V Shell Western Supply and Trading LTD & Shell Petroleum Development of Nigeria LTD
Others are: SUIT NO. FHC/L/CS/1748/16 – Federal Government of Nigeria V. CNOOC Exploration & Production Nigeria LTD
SUIT NO: FHC/L/CS/1465/17 – Federal Government of Nigeria V. Star Deep Water Petroleum LTD
APPEAL NO: CA/L/PRE/ROA/353MI/2020 – Chevron Petroleum Nig. LTD V Federal Government of Nigeria
APPEAL NO. CA/L/54/18 – Federal Government of Nigeria V Total E & P Nigeria LTD
APPEAL NO. CA/LAG/CV/825/19 – Federal Government of Nigeria V Nigeria Agip Oil Company LTD
APPEAL NO. CA/LAG/CV/824/2019 – Federal Government of Nigeria V Brasoil Oil Services Company Nigeria LTD
APPEAL NO: CA/LAG/CV/215/2022 – Federal Government of Nigeria V CNOOC Exploration & Production Nigeria LTD
NIMASA further stated that the Federal Government through the agency and the office of the Attorney-General of the Federation has been provided with periodic updates on these matters, adding that NIMASA is also closely monitoring the proceedings which have so far been satisfactory.
It also disclosed that the Economic and Financial Crimes Commission (EFCC) is interested and is working assiduously in tracing and recovering the stolen crudes and unremitted funds.
“This matter is of significant national importance and NIMASA will continue to accord it all the attention it deserves,” says NIMASA.
A report by a section of the Nigerian media on Monday (not New Telegraph) had indicated that the Senate had sent an enquiry to the apex maritime agency on “NIMASA’s payment of $5 million legal fee for $12 billion missing crude recoveries without result”.