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Procedural Posture and Purpose
This document is the First Witness Statement of Michael Quinn, Chairman of Process and Industrial Developments Limited (P&ID), submitted in support of the Claimant’s Request for Arbitration dated 22 August 2012. The arbitration, governed by the Nigerian Arbitration and Conciliation Act, concerns claims for damages arising from the alleged repudiatory breach by the Ministry of Petroleum Resources of the Federal Republic of Nigeria of a Gas Supply and Processing Agreement (GSPA) executed on 11 January 2010.
Factual Background and Key Positions
The witness statement details the extensive factual background leading to the execution of the GSPA, under which P&ID was to construct gas processing facilities in Calabar to strip natural gas liquids (NGLs) from wet gas supplied by the Respondent. The Claimant asserts that it expended significant resources, estimated at over $40 million, in preparatory engineering and project development. The statement outlines the Claimant's position that the Respondent consistently failed to fulfill its obligations to procure and deliver the contracted volumes of wet gas, despite numerous stakeholder meetings and proposed alternative solutions involving third-party operators such as Addax Petroleum.
Mr. Quinn further testifies that, following years of delay and the Respondent's failure to provide necessary undertakings or implement the GSPA, P&ID formally accepted the Respondent's conduct as a repudiatory breach on 20 March 2013, thereby terminating the agreement. The statement serves to substantiate the Claimant's factual narrative regarding the formation of the contract, the Claimant's readiness to perform, and the specific acts and omissions by the Respondent that precipitated the arbitration.