This document is the judgment of The Hon Mr Justice Robin Knowles CBE in the Commercial Court of the King’s Bench Division, High Court of Justice, regarding a challenge by the Federal Republic of Nigeria (Nigeria) to an arbitration award in favour of Process & Industrial Developments Limited (P\&ID).
**Case Background:**
* **The Agreement:** On January 11, 2010, the Federal Government of Nigeria and P\&ID, a company registered in the British Virgin Islands, signed a 20-page Gas Supply and Processing Agreement (GSPA) for accelerated gas development.
* **Arbitration & Award:** P\&ID commenced arbitration in the GSPA’s third year. The Tribunal found that Nigeria committed a repudiatory breach of the GSPA, terminating the agreement. A final award dated January 31, 2017, required Nigeria to pay P\&ID US$6.6 billion, a sum which now exceeds US$11 billion with interest.
* **Nigeria’s Challenge:** Nigeria challenges the awards, making allegations of bribery, corruption, and perjury extending across the GSPA, the arbitral process, and early stages of the court challenge. P\&ID describes Nigeria’s case as “false and dishonest”.
**The GSPA and Project Details:**
* **Purpose:** The GSPA’s objective was the construction of Gas Processing Facilities (GPFs) by P\&ID, with Nigeria supplying “wet” gas for processing into “lean” gas for power generation.
* **Wet Gas Supply:** Nigeria was to supply 400 MMSCuFD of wet gas to the GPFs site in Calabar from OMLs 123 and 67 or other locations, with Phase 1 (150 MMSCuFD) scheduled for the last quarter of 2011.
* **P\&ID’s Role:** P\&ID was to construct and operate the GPFs and retain the remaining Natural Gas Liquids (NGLs) for sale. P\&ID also undertook to build an additional pipeline for Phase 2 at no cost to the Government, if needed.
* **Equity Transfer:** P\&ID was to transfer a total of 10% of its equity to the Government or its nominee, 5% upon commencement of Phase 1 wet gas delivery, and the remaining 5% pro rata with Phase 2 delivery.
* **Duration:** The agreement was for 20 years from the Start Date or until the Capital Cost was fully repaid, whichever occurred later.
**Key Findings on Bribery and Dishonesty:**
* **Bribery Allegations:** Nigeria alleges corruption by P\&ID before, at, and after the GSPA, including corrupting some of Nigeria’s lawyers during the arbitration.
* **ICIL Group Payments:** The ICIL Group of companies, which included P\&ID, was involved in other contracts with Nigerian Ministries, with contemporaneous payments made to officials or those connected to them, including Mr. Broderick Bozimo’s family and Mrs. Grace Taiga’s family. The court did not accept that all payments were legitimate business expenses.
* **GSPA Drafting:** The court found Mrs. Grace Taiga, Legal Director at the Ministry of Petroleum Resources, had a role in bringing about the GSPA. Her submission to the Minister, Dr. Lukman, did not emphasise Nigeria’s responsibilities or the risk of a billion-dollar liability if wet gas was not sourced.
* **P\&ID’s Contradictory Positions:** P\&ID adopted differing positions regarding the use of its prior Project Alpha engineering work, telling General Danjuma’s representatives the work was useless for the Calabar project, while stating the opposite to the Ministry.