CHINA EXPORT & CREDIT INSURANCE CORPORATION V EMERALD ENERGY RESOURCES LTD

[2018] EWHC 1503 (Comm), Queen's Bench Division, Commercial Court, Sir Richard Field, 22 June 2018

Arbitration - Stay of judicial proceedings - Non-exclusive jurisdiction clause - Arbitration clause - Arbitration Act 1996, section 9 - Inherent power of court to stay its proceedings

By arrangements made in 2001, Emerald was granted an Oil Prospecting Licence in Nigeria, and entered into an insurance contract with Sinosure for export credit insurance. The various contracts involved were governed by Nigerian law with disputes to be resolved by arbitration in London. In June 2008 refinancing arrangements were entered into, the net result being that Sinosure insured a Bank in respect of a promissory note issued by Emerald regarding sums borrowed from the Bank to pay a third party creditor, and the Bank assigned the benefit of the promissory note to Sinosure. The promissory note was governed by English law and Emerald submitted to the non-exclusive jurisdiction of the English courts in respect of any claim arising out of or in connection with the promissory note. Sinosure issued proceedings in England on the promissory note, and Emerald sought to have the proceedings stayed in favour of arbitration.