The Supreme Court on Friday okayed the right of the Federal Government in voiding the allocation of Oil Prospecting Licences OPLs 321 and 323 to the Korea National Oil Corporation (KNOC) and reawarding the oil blocks to ONGC/Owel Petroleum Consortium.

The apex court gave the judgement in a the suit marked SC114/2013 by the President of the Federal Republic of Nigeria and 3 others against KNOC and six others. In its judgement, the apex court held that the action of the President, which was taken in 2009, was within his executive powers.

The Office of the Attorney General of the Federation, Abubakar Malami (SAN) represented the Federal Government while Dr Alex Iziyon (SAN) and Chief Robert Clarke (SAN) represented ONGC/Owel Petroleum Consortium and KNOC respectively.

The court noted that the act, which arose from a contractual arrangement between the parties, not being a quasi-judicial act, was therefore not subject to judicial review in respect of which a writ of certiorari lies.

The court further noted that the dispute between the parties arose from a contractual relationship and held that, by the letter of award in respect of OPLs 321 and 323 respectively, “in my considered view, constitutes allegations of breach of contract.

“Where there is a contractual obligation between the parties, both parties are expected to comply with the terms and conditions of the contract. Where the contract contains terms for bringing the contract to award by either party and the terms are not complied with, the remedy of the affected party lies in action for breach of contract, damages, etc.”

Source: The New telegraph