NIGERIA: THE CRUDE OIL ECONOMY
First, a health warning. This article is about recalcitrant, inept and quite possibly corrupt Nigerian politicians and government ministers. It is certainly about incompetence and misconduct in public office. It should be about prosecution and incarceration. You will read about how government officials have conspired to create and place a liability on the Nigeria people, a burden capable of crippling a generation. So staggering is the highly likely outcome it will wreck Nigeria's economy. If you are Nigerian but not of stout disposition I would urge you to sit down or better still look away now. .
Process and Industrial Development Ltd (P&ID) entered into a contract with the Ministry of Petroleum Resources of the Federal Government of Nigeria (FGN) in 2010. The 20-year Gas Supply & Processing Agreement (GSPA) obliged P&ID to build a natural gas processing plant and the FGN to build pipelines and to bring untreated gas to the plant. It will be remembered by many as a time the unicorn that is the Gas Master plan was a byword for confusion and ineptitude.
In August 2012, P&ID served the Nigerian government a Request for Arbitration. P&ID alleged that it invested US$40m in the project, although it did not actually build a plant. The company also alleged that the FGN did not build the pipelines as specified in the agreement. Therefore, P&ID is entitled to compensation for lost earnings .