Korean State Firm Wins Oil Suit Against Nigeria

A South Korean state oil firm Thursday won a suit against Nigeria after a high court ruled that President Umaru Yar'Adua had overstepped his powers in revoking its two exploration licenses, AFP reported.

The Korea National Oil Corporation (KNOC) had sought the restoration of two offshore oil prospecting licenses granted in 2005 in the restive Niger Delta.

They were revoked in January by Nigeria on the ground that the firm had not fully paid the investment pledged.

"The applicant's suit therefore succeeds because there is no power conferred on the president to revoke or void the (licenses) allocated to it," Abuja Federal High Court judge Abdullahi Mustapha said.

There was nothing in the relevant law that allowed for such oil prospecting licenses to be revoked, the judge said.

"I hold that the applicant fulfilled the conditions," he said, pointing out that the original terms for the licenses had only been modified later.

But the judge said the government and its agents were "perpetually restrained from further interfering or disturbing the applicant in the process of their lawful duty."

KNOC lawyer Robert Clarke hailed the ruling, saying it would boost investor confidence in the west African powerhouse, whose reputation is marred by corruption and state interference in business.

"We are happy with the judgement of the court," he said. "The implication of the judgement is that the international community will now have confidence to invest in Nigeria."