PAN OCEAN OIL CORPORATION (NIG.) LTD v. KCA DEUTAG DRILLING GMBH & NIG. LTD.

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Facts:

The Respondents entered into a Land Drilling Agreement (the “Land Drilling Agreement” or “the Contract”) with the Appellant for the provision and operation of a land drilling rig T-76 and other associated drilling services to the Appellant. This also included the provision of other supporting equipment, spare parts, supplies, services, and personnel to drill oil and gas wells in locations designated by the Appellant. The 1st Respondent did not execute any part of the Contract in Nigeria rather it was the 2nd Respondent who, in accordance with the terms of the Contract, carried out the performance and execution in Nigeria of the Contract. The Respondents duly issued invoices to the Appellant for services rendered under the Land Drilling Agreement, which invoices were not paid by the Appellant. Following several unsuccessful demands by the Respondents for the payment of the outstanding invoices and pursuant to the arbitration agreement contained in clause 13 of the Land Drilling. Agreement, the Respondents submitted the dispute regarding the failure and/or refusal of the Appellant to settle the outstanding invoices to arbitration under the Arbitration Rules of the International Chamber of Commerce (“ICC”). In the course of arbitration, the parties advised the Arbitral Tribunal that they had entered into a settlement agreement, which was respectively executed by the parties and requested the Arbitral Tribunal to enter an award by consent in terms of the Settlement. The Arbitral Tribunal made a Consent Award (based on the Settlement Agreement) in favour of the Respondents in the sums totalling, US$13,487,286.17 (Thirteen Million, Four Hundred and Eighty-Seven Thousand, Two Hundred and Eighty-Six United States Dollars and Seventeen Cents); and NGN1,16,4,766,574.72, (One Billion, One Hundred and Sixty-Four Million, Seven Hundred and Sixty-Six Thousand, Five Hundred and Seventy-Four Nigerian Naira and Seventy-Two Kobo), payable in respect of services provided by the Appellant to the Respondents under the Land Drilling Agreement.
The Appellant thereafter made voluntary payment of part of the award sums and the Respondents also recovered some portions of the award sums through garnishee proceedings. However, a significant part of the award debt remained outstanding. Following the refusal and failure of the Appellant to liquidate the award sums, the Respondents applied for and by an Order, the High Court of Lagos State ordered that the award be enforced in the same, manner as a judgment, of the lower Court. The Appellant subsequently filed an application seeking an order for stay of further execution of the arbitral award and an order setting aside the Ruling of the lower Court recognizing the arbitral award as enforceable as a judgment of the High Court of Lagos State on the ground of lack of jurisdiction of the Court. The lower Court heard the application and, in a Ruling, dismissed same for lacking in merit.
The Appellant being dissatisfied with the ruling of the Court below appealed to the Court of Appeal.

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