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UK court orders NLNG to pay $380m over undelivered products

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A London court has ordered Nigeria LNG (NLNG) to pay $380 million in compensation to two major global commodity traders, Vitol and Glencore, after winning a legal battle against Nigeria’s sole liquefied natural gas producer.

According to a Reuter’s report quoting court documents, NLNG was ordered to pay the two companies for failing to deliver contracted LNG cargoes.

The international news network explained that the supply contract was between NLNG and another trading firm, Taleveras, in which the latter was supposed to receive 19 LNG cargoes from NLNG between 2020 and 2021.

Taleveras had reportedly pre-sold some of these shipments to Vitol and Glencore, but when NLNG failed to deliver, the two companies sued Taleveras, setting off a chain of litigation.

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The case was reportedly heard in London’s High Court and Court of Appeal and last week, the court rejected NLNG’s appeal, confirming that the company must pay approximately $260 million to Vitol and $120 million to Glencore.

NLNG, a joint venture in which Shell, TotalEnergies, and Eni hold minority stakes while Nigeria’s state-owned oil company owns 49%, declined Reuters’ request for comment on the ruling saying it was still reviewing the judgment.

Shell and Eni also refused to comment, while TotalEnergies did not respond to inquiries.

Taleveras, founded by Nigerian businessman Igho Sanomi in 2004 and now based in Dubai, also declined requests for comments on the ruling.

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It is not clear how much Taleveras itself will receive beyond the $380 million owed to Vitol and Glencore. However, a full written judgment is expected to be released in the coming weeks.

Reuters noted that the lawsuit is part of a broader trend of legal disputes in the energy market, where buyers have taken action against producers for failing to honor contracts.

Gas prices, which plunged during the COVID-19 pandemic, surged dramatically after Russia’s invasion of Ukraine in 2022.
European gas prices fluctuated sharply, dropping to 3.63 euros ($4.14) per megawatt-hour in 2020 due to low demand during the pandemic.

However, it soared to 311 euros ($328) per MWh in 2022 after the Ukraine invasion disrupted supplies.
Some producers were accused of diverting contracted volumes to the more lucrative spot market while failing to fulfil long-term trade agreements.

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An example is a litigation in which Shell and BP took legal action against U.S. gas exporter Venture Global LNG for not delivering agreed cargoes. Venture Global blamed the delays on technical issues at its facilities.

NLNG was a defendant in a suit filed by the Incorporated Trustees of the National Association of Plants Operators (NAPO) over the alleged denial of registration of the trade union by the Ministry of Labour.

[Nairametrics]

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Just in: Shettima jets out to attend Senegal’s independence

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Vice President Kashim Shettima has departed Abuja for Dakar, Senegal for official assignment.

The VP is expected to represent President Bola Ahmed Tinubu at the West African nation’s 65th Independence Anniversary celebrations.

Senegal marks its Independence Day on April 4 each year, commemorating its liberation from French colonial rule in 1960.

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The annual celebration is a significant event featuring national parades, cultural displays, and ceremonies highlighting the country’s achievements and unity.

A statement issued on Thursday by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, said Shettima’s participation followed an official invitation from Senegalese President, Bassirou Diomaye Faye.

This underscored the strong diplomatic and economic ties between Nigeria and Senegal.

The two nations share longstanding relations, particularly within the Economic Community of West African States (ECOWAS), fostering cooperation on regional security, trade, and development initiatives.

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The event is expected to reaffirm Senegal’s commitment to democratic governance and regional cooperation.

Vice President Shettima is scheduled to return to Nigeria immediately after the one-day celebrations, continuing his engagements in national development and diplomatic outreach.

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Just in: “Ignore rumour mongers, there was no time I collapsed “-Wike asserts

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Federal Capital Territory FCT minister, Nyesom Wike on Thursday dismissed social media reports that he collapsed last week, describing the reports as the handiwork of rumour mongers trying to score cheap political points.

Wike spoke after he inspected four ongoing projects in the territory, including the International Conference Centre ICC.

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CJ transfers Natasha’s case to Justice Nyako

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The Chief Judge of the Federal High Court, Justice John Tsoho, has reassigned the suit filed by Senator Natasha Akpoti-Uduaghan against Senate President Godswill Akpabio and others to Justice Binta Nyako.

The case, which was initially handled by Justice Obiora Egwuatu, will now be heard afresh by Justice Nyako following Egwuatu’s withdrawal from the matter. His decision came after allegations of bias were reportedly raised by Akpabio, the third defendant in the suit.

Justice Egwuatu withdrew from the case on March 25, citing concerns over judicial integrity.

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“Justice is rooted in confidence in the court. Once a litigant expresses his belief that there is bias or likelihood of bias on the part of the judge, it will not be in the interest of justice for the judge to continue,” he stated.

He forwarded the case file to the Chief Judge for reassignment.

Senator Akpoti-Uduaghan, who represents Kogi Central Senatorial District, had filed the lawsuit to halt an investigation into her alleged misconduct by the Senate Committee on Ethics, Privileges, and Public Petitions. She had sought an interim injunction to prevent the committee from proceeding with disciplinary actions against her.

Justice Egwuatu previously issued an order on March 4 declaring Akpoti-Uduaghan’s suspension by the Senate null and void. However, on March 19, he set aside a portion of his ruling after hearing arguments from both sides. The Senate had filed a motion urging the court to vacate the order, arguing that it interfered with its legislative duties and could lead to a constitutional crisis.

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During legal proceedings, the Senate’s lawyer, Chikaosolu Ojukwu, argued that the court’s order restrained the Senate from fulfilling its constitutional responsibilities, while Akpoti-Uduaghan’s counsel, Michael Numa, opposed the motion, describing it as a disregard for the court’s authority. He urged the court to dismiss the Senate’s application and take disciplinary action against the defendants for contempt.

Akpoti-Uduaghan also filed a contempt charge, asserting that her suspension was a deliberate violation of the court’s interim injunction. She maintained that the court’s directive was duly served on the defendants, but they proceeded with actions in defiance of the ruling.

Nigeria’s 1999 Constitution (as amended) grants the National Assembly the authority to manage its internal affairs, including disciplining its members. However, this power is not unlimited. It must be exercised in accordance with constitutional provisions, due process, and the rule of law.

The principle of separation of powers, outlined in Section 4 for the legislature, Section 6 for the judiciary, and Section 5 for the executive, ensures that each arm of government functions independently without interference. However, courts have the authority to review legislative actions if they infringe on fundamental rights or violate existing laws.

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Judicial rulings have established that while legislatures hold disciplinary authority, their actions must align with the principles of natural justice, particularly the right to a fair hearing, as outlined in Section 36 of the Constitution. The outcome of this case could clarify the extent of legislative immunity and determine whether courts can override Senate disciplinary actions when due process is at stake.

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