LNG

May 17 (LNGJ) - LNG player Repsol has begun legal action against Argentina to claim compensation for the seizure of its $10.5bn stake in the former national oil company YPF. Repsol will be filing a claim with the World Bank's International Centre for the Settlement of Investment Disputes (ICSID). Andy Moody, partner at international law firm Eversheds, explained: "ICSID remains the forum of choice for international investment disputes, and Repsol may wish to exercise its rights to pursue Argentina through ICSID arbitration for alleged failure to compensate adequately for the expropriation. However, Argentina has been known not to pay out under arbitral awards made against it, which may make it difficult for Repsol to collect funds from any award in its favour. Furthermore, Argentina also has a history of applying for annulment of ICSID awards made against it, so any award in favour of Repsol could face an annulment application - further extending the process. This may become quite a protracted saga."