This development comes two years after the company was slammed with a $9m claim for breaching contract by a US Court.
The company, which was incorporated in 2013, prides itself for producing and marketing Liquefied Natural Gas to customers across Nigeria since April 2019.
However, in 2018, there were reports of how Broeke was struggling to get his LNG project off the ground in Nigeria and also facing a $9m claim from his subcontractor, Baker Hughes.
How it started
In 2014, IEC through Greenville LNG entered into an agreement with Baker Hughes Energy Services LLC, formerly known as GE Oil & Gas (GEOG), for the purchase and installation of two small-scale liquified natural gas plants in Rumuji, Rivers State, Nigeria.
According to the documents obtained by POLITICS NIGERIA, GEOG agreed to supply IEC with two small-scale liquified natural gas production plants — the first by June 24, 2015, and the second by September 24, 2015— for use at the Rumuji Site.
It was stated that the agreement would be governed by and construed in accordance with the laws of the state of New York.
Unfortunately, GEOG failed to deliver the gas plants by their contractual delivery deadlines and this stalled installation, commissioning, and start-up of the Plants.
On July 31, 2018, IEC filed a Notice of Demand for and Commencement of Arbitration under the Contracts on behalf of itself and Greenville. IEC initially sought approximately $75 million in damages but its demand increased to $700 million by the end of the arbitration.
But GEOG also filed counterclaims against IEC for breach of the contracts, asking for damages up to $40.1 million. In 2020, the American Tribunal gave its verdict, ordering IEC and Greenville to pay GEOG over $9.5m for breaching contracts.
The Tribunal held that IEC had breached the Equipment Contract by failing to make two Milestone payments.
Dissatisfied with the judgement, On January 27, 2021, IEC filed a petition to vacate the Award in New York state court but the court rejected IEC’s arguments.
“In short, due to the strong deference owed to the decisions of arbitrators, the Court is compelled to reject IEC’s arguments and confirm the Award,” the court ruled.
Controversial Business Practices
Prior to setting up Greenville, Eddy Van Den Broeke ran ASCA bitumen from 1996 and grew the company into becoming a giant monopoly with over 90% of the Nigerian market by 2015.
Eddy Broeke’s family was one of six of Belgium’s wealthiest families that featured on the Panama Papers, a cross-border investigation that revealed a list of thousands of people who channelled funds to tax havens.
“The family of Eddy Van Den Broeke, who turned the Eres company into an international player, is also mentioned. Eddy Van Den Broeke is identified as the sole beneficiary of at least five offshore companies in the BVI,” the ICIJ report read.
Eddy was named in the Panama Papers having had an extensive network of shell companies to hide his funds and avoid government oversight.
Another multi-million dollar breach of contract suit looming
Our investigations also revealed that recently, BUA, which is one of Greenville’s largest clients, is set to allegedly sue Greenville for 50 billion Naira for a possible breach in contract and reneging on its obligation to supply gas to its businesses in the far north.
According to sources, this dispute is as a result of Greenville LNG reneging on their contract with BUA to supply gas and also increasing prices arbitrarily despite the contractually agreed oil-indexed pricing for any changes in price.
Industry watchers have claimed that Greenville is trying to take advantage of its near monopoly in the domestic trucked LNG market hence their habit of entering into contracts and reneging on it after starting.
With Eddy and his companies’ history of reneging on contracts entered into with the Federal Government, partners, suppliers, communities and clients, it is unlikely that Greenville LNG or its billionaire owner Eddy and Managing Director Ritu Sahajwalla would stop such behaviour anytime soon.
Experts familiar with BUA’s history of ensuring its rights are enforced, believe BUA will pursue this issue to a logical conclusion at the courts and till their rights are enforced.
Below are court documents detailing Greenville’s legal battle with Baker Hughes;