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In a decision partially reversing a September 2019 ruling by the late U.S. District Judge William Pauley in Manhatta, an appeal court in the U.S on 8th July said ExxonMobil Corp and Royal Dutch Shell Plc affiliates may try to enforce part of a $1.8 billion arbitration award against the Nigerian National Petroleum Company Limited)NNPC).
In a decision partially reversing a September 2019 ruling by the late U.S. District Judge William Pauley in Manhatta, an appeal court in U.S on 8th July said ExxonMobil Corp and Royal Dutch Shell Plc affiliates may try to enforce part of a $1.8 billion arbitration award against the Nigerian National Petroleum Company Limited)NNPC).
The companies have been disputing oil extraction near Nigeria’s coastline. The dispute was regarding a 1993 contract for Esso Exploration and Production Nigeria Ltd and Shell Nigeria Exploration and Production Co to invest billions of dollars to develop the Erha oil field in the Gulf of Guinea, and share profits with NNPC. Soon after the extraction began in 2006, disagreements arose. Exxon and Shell accused in late 2007, that NNPC was at the government’s behest “lifting” more oil than the contract allowed, resulting in billions of dollars in losses for the company.
Exxon and Shell sought to enforce their award in Manhattan while NNPC wanted to set it aside in Nigeria. The case is Esso Exploration and Production Nigeria Ltd et al vs Nigerian National Petroleum Corporation, 2nd U.S. Circuit Court of Appeals, Nos. 19-3159, 19-3361.
