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ARTICLE · 30 AUGUST 2019

English Commercial Court Enforces Multi-Billion Arbitral Award Over Failed Gas Project

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On August 16, 2019, the England and Wales High Court of Justice (Commercial Court) released its decision in Process & Industrial Developments Limited v The Federal Republic of Nigeria

CanadaLitigation, Mediation & Arbitration

On August 16, 2019, the England and Wales High Court of Justice (Commercial Court) released its decision in Process & Industrial Developments Limited v The Federal Republic of Nigeria ("Process & Industrial Developments"), [2019] EWHC 2241, in which it enforced a US$9 billion arbitral award against the Republic of Nigeria ("Nigeria"). The enforcement of this 'mega-award' is significant for oil and gas companies doing business abroad and also for the practice of international commercial arbitration.

The Decision

Process & Industrial Developments Ltd. ("PID"), a BVI entity, entered a "Gas Supply and Processing Agreement" with Nigeria (the "Agreement"). Under the Agreement, PID was to build and operate a gas processing plant for "wet gas" to be supplied from the Nigerian Ministry of Petroleum Resources. The Agreement had a 20 year term. Furthermore, the Agreement contained an arbitration clause, which stated:

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