By Libby George
LAGOS, Nov 28 (Reuters) - The Nigerian government on
Thursday placed a bank guarantee of $200 million with a high
court in London to secure a stay on asset seizures of up to $9
billion related to a failed gas project, a spokesman for its
attorney general said.
Process & Industrial Developments, a firm based in the
British Virgin Islands set up solely to build a gas processing
plant in Nigeria, won a $6.6 billion arbitration award after the
2010 deal collapsed. The award has been accruing interest since
2013 and is now worth more than $9 billion.
Nigeria in September successfully sought the right to appeal
an August ruling that would have converted the arbitration award
to a judgment, which would make it easier for P&ID to seize its
assets. Nigeria has said it would fight making any kind of payment
to P&ID. The country's anti-graft unit has also charged two
foreign nationals and a former petroleum ministry official with
wrongdoing related to the case. P&ID has criticised the
investigations as a "sham" that would "never pass muster" in
other jurisdictions. [https://reut.rs/2QYFZvS
Nigerian Attorney General Abubakar Malami last week said the
nation was appealing a requirement that it deposit $200 million
with the court in order to secure a stay on asset seizures while
it challenged the August ruling. "This variation in security, which was proposed by Nigeria
as an alternative solution during a procedural hearing on 22nd
November, has been accepted by the court and P&ID," the
spokesman for the attorney general said in an emailed statement.
P&ID did not immediately respond to a request for comment.
The government has also expanded its legal team to include
London-based law firm Mishcon de Reya. Shaistah Akhtar, a
partner with the firm, will lead the legal team alongside Mark
Howard QC of Brick Court Chambers, the spokesman said.