Arbitration between Nigeria LNG Limited and ENEL SPA
Nigeria LNG Limited (NLNG) wishes to clarify the situation with regard to the Sale and Purchase Agreement concluded with ENEL SpA in 1992 (the Contract) and its present relationship with ENEL SpA following publications in the Italian press of various statements made by a number of parties.
Reference is made to the NLNG press release of 17th December 1996. Since that time there has been no change in the relationship between NLNG and ENEL SpA. The Sale and Purchase Agreement is no longer in force following its repudiation by ENEL SpA who have indicated (without further explanation) that they do not intend to comply with their obligation under the Contract.
NLNG accordingly commenced arbitration proceedings for the recovery of substantial damages from ENEL SpA following termination of the Contract. Both NLNG and ENEL SpA have instructed London solicitors and the arbitration is currently progressing.
ENEL SpA have recently indicated to NLNG that they are investigating the possibility of an alternative arrangement whereby all or part of LNG originally contracted for by ENEL SpA might be delivered to Italy. As of today, NLNG has not received any proposal that could be properly considered.
NLNG will continue to pursue their claims in arbitration for full compensation and substantial damages. Accordingly, the arbitration proceedings are being progressed.
Nigeria LNG Limited
February 18, 1997
