(Adds P&ID response)
By Libby George
LAGOS, Nov 29 (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.
A spokesman for P&ID said the company hoped the
administration would "accept the reality of the arbitration
tribunal award and the decisions of the English Court."
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.