A Nigerian federal court said on Thursday the government illegally revoked offshore oil exploration rights awarded to South Korea's National Oil Corp (KNOC) and banned it from further interfering with the firm. President Umaru Yar'Adua in January withdrew KNOC's rights to two major offshore oil fields awarded in 2005 by the previous administration in Africa's biggest energy producer, saying the Korean firm failed to fully pay the investment pledged.
The case has been closely watched by the oil industry and foreign investors concerned about the security of contracts when administrations change. "The action by the applicant (KNOC) succeeds ...The letter of January 8, 2009, signed by the minister of state for petroleum is declared illegal, null and void," Justice Abdullahi Mustapha told the court.
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