The Shell Petroleum Development Company of Nigeria Limited v Sunlink Energies and Resources Limited
[2023] EWHC 3135 (Comm)
Nigerian Agrip Exploitation Limited v GEC Petroleum Development Company Limited
17 February 2023
[2023] EWHC 414 (Comm)
High Court
Two companies had an agreement to settle disputes in London. One company went to court in Nigeria instead, ignoring court orders in England. The English court said the Nigerian company must stop and must only deal with the dispute in London.
Key Facts
- •Nigerian Agip Exploration Limited (Claimant) and GEC Petroleum Development Company Limited (Defendant) entered into business agreements (Farm In Agreement, Joint Operating Agreement, Technical Service Agreement) containing an arbitration clause referring disputes to London under ICC rules.
- •Claimant commenced arbitration in August 2018, claiming damages exceeding $200 million for misrepresentation and breach of contract.
- •Defendant participated in arbitration until November 2020, then initiated proceedings in Nigeria seeking to halt the London arbitration.
- •The English High Court granted interim anti-suit injunctions preventing the Nigerian proceedings.
- •The ICC arbitration concluded with an award of approximately $22 million to the Claimant.
- •Defendant initiated further proceedings in Nigeria seeking to set aside the ICC award.
- •Claimant returned to the English High Court seeking final injunctive relief.
Legal Principles
Parties agreeing to a specific arbitration seat (here, London) agree that challenges to awards are to be made only in the courts of that seat.
C v D [2007] 2 Lloyd’s Rep 367 at [29]-[34]
The position is stronger regarding relief to restrain attempts to interfere with an arbitration outcome when an award has already been issued.
C v D [2007] 2 Lloyd’s Rep 367 at [55]
Approval of the proposition that challenges to awards should be made in the courts of the designated seat.
Enka v Chubb [2020] 1 WLR 4417 at [121]
The court's discretion in granting injunctive relief, considering factors such as breach of arbitration agreements and defiance of court orders.
Various case law referenced throughout the judgment
Outcomes
The English High Court granted final injunctive relief.
Defendant's repeated breaches of the arbitration agreement and defiance of court orders, coupled with the principle of exclusive jurisdiction of the English courts as the seat of arbitration.
Declaration that the ICC arbitration is governed exclusively by the English Arbitration Act and English curial law.
To clarify the court's exclusive jurisdiction and the defendant's breach of the arbitration agreements.
Mandatory injunction requiring immediate discontinuance of the 2022 Nigerian proceedings.
To enforce the court's decision and prevent further defiance.
Continuing prohibitory injunction against the commencement of further proceedings outside of arbitration or the English courts.
To prevent future breaches of the arbitration agreement.
Indemnity costs awarded to the Claimant.
Defendant's blatant and repeated breaches of its arbitration obligations.