E. Kotsiri, Dispute resolution in international petroleum transactions, 2025
This book seeks to explore the framework within which oil and gas investment disputes are resolved. The long-term and highly complex nature of such investments, specific characteristics of the industry and, crucially, the presence of the sovereign State itself, give rise to significant risks facing foreign investors. As a matter of fact, the oil and gas industry is considered as one of the most dispute intensive industries. Foreign investors will seek to rely on contractual mechanisms in order to stabilize their investment and hedge against adverse actions of the host State, in particular contractual stabilization clauses and State contract “internationalization”. Significant protection to foreign investors is also offered under the international investment treaty framework and investor state dispute settlement (ISDS) clauses. Through the examination of investment treaties, arbitral jurisprudence and relevant literature, this book explores in detail investment treaty provisions and their significance for foreign investors.
The work goes on to analyze the principal methods for the resolution of oil and gas investment disputes, namely investment arbitration under the ICSID framework, as well as arbitration pursuant to the ICC and UNCITRAL Rules. Challenges to arbitral awards including review and annulment thereof, enforcement of arbitral awards under the ICSID Convention and under the New York Convention, as well as complications arising due to sovereign immunity are some of the matters dealt with. The complex interrelation between treaty claims and contract claims in the context of investment arbitration, the question of whether treaty-based tribunals have jurisdiction over purely contractual claims and the function of treaty “umbrella-clauses” are examined in detail. Though international arbitration is currently the leading dispute resolution mechanism in dealing with oil and gas investment disputes, the significance of alternative dispute resolution (ADR), in particular conciliation and investment mediation, has become increasingly apparent in recent years. The advantages and shortcomings of such mechanisms, as well as the increasing utilization of multi-tier dispute resolution clauses and dispute prevention mechanisms, are considered. The final part of this book deals with what seems to be an ever-increasing need for reform of the international ISDS framework by examining potential reform options and the complexities which may arise from their respective implementation.
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Table of contents +
Table of contents
Acknowledgments
Table of Abbreviations
Introduction
1. Natural resources, resource nationalism and the oil and gas industry
1.1. Significance of natural resources
1.2. Resource nationalism: Concept, evolution and significance
1.3. Particularities of the oil and gas Industry
2. Investor-state oil and gas contracts
2.1. Concept and particular characteristics of State contracts
2.2. Forms of State contracts
2.2.1. Concession agreements
2.2.1.1. The traditional concession agreement
2.2.1.2. The modern concession agreement
2.2.2. Production sharing agreements
2.2.3. Participation agreements
2.2.4. Service contracts
2.2.4.1. Pure or non-risk service contracts
2.2.4.2. Risk service contracts
2.3. Concept and significance of model contracts
3. From lex mercatoria to lex petrolea
3.1. The concept of lex mercatoria
3.2. Lex petrolea: Origins, evolution and criticism
4. Disputes in the oil and gas industry – An overview
4.1. Concept of “dispute”, dispute categorization and common dispute triggers
4.2. An overview of investment dispute resolution and prevention mechanisms in the oil and gas industry
5. Stabilizing the investment contract: An overview of the relevant contractual provisions
5.1. Stabilization clauses in oil and gas State contracts
5.1.1. Forms of traditional stabilization clauses
5.1.2. Facing the challenge of State sovereignty
5.1.3. Economic stabilization clauses
5.1.4. Allocation of burden clauses
5.1.5. Stability pursuant to national legislation
5.1.6. Challenges facing future stabilization clauses
5.2. State contract internationalization
6. Foreign investor protection under investment treaties
6.1. Concept and significance of FDI
6.2. Consent to arbitration in investment treaties
6.3. The scope of the ISDS clause
6.4. Arbitration forum selection
6.5. Substantive investment treaty obligations
6.5.1. Protection against expropriation
6.5.2. Fair and equitable treatment (FET)
6.5.3. Right to “full protection and security”
6.5.4. Protection against discriminatory treatment
6.5.5. Right to national and MFN treatment
6.5.6. Right to free transfer of funds and assets
6.6. Compensation under BITs
6.6.1. Available remedies
6.6.2. Standards of compensation for lawful expropriation
6.6.3. Damages for unlawful expropriation
6.6.4. Standard of compensation for other treaty standards
7. Investment arbitration
7.1. To arbitrate or to litigate oil and gas investment disputes?
7.2. The arbitration agreement
7.2.1. Validity of the arbitration clause
7.2.2. “Admissibility”, “Arbitrability” and “Jurisdiction” – a distinction to be observed
7.2.3. The “separability doctrine”
7.2.4. Law governing the arbitration agreement
7.2.5. “Competence – competence”
7.2.6. Enforceability of the arbitration agreement
7.3. The designation of arbitral rules
7.3.1. ICSID Arbitration
7.3.1.1. Evolution, scope and function
7.3.1.2. Unique characteristics of ICSID arbitration
7.3.1.3. ICSID Additional Facility Rules
7.3.2. International commercial arbitration of investor-State disputes
7.3.2.1. International Chamber of Commerce (ICC)
7.3.2.2. UNCITRAL Arbitration Rules
7.4. The designation of the seat of arbitration
7.5. The designation of the language of arbitration
7.6. The determination of the number and method of appointment of arbitrators
7.7. Confidentiality
7.8. Expedited proceedings
7.9. Interim measures
7.10. Form and content of international arbitration awards
7.11. Res judicata effect of international arbitration awards
7.12. Challenges to arbitral awards
7.12.1. Review of non-ICSID awards – Recourse to national courts
7.12.2. Annulment of ICSID awards
7.13. Enforcement of arbitral awards
7.13.1. Enforcement under the ICSID Convention
7.13.2. Enforcement under the New York Convention
7.14. Sovereign immunity
8. Treaty claims v. contract claims in investment arbitration: A reciprocal relation
9. Alternative dispute resolution (adr) of oil and gas investment disputes
9.1. Conciliation of investment disputes
9.2. Investment mediation
9.3. Expert determination
9.4. Multi-tier dispute resolution clauses
9.5. Dispute prevention policies (DPPs)
10. ISDS reform
Conclusion
Bibliography and materials
Bibliography
Conventions
Arbitration, Conciliation and Mediation Rules
UN Resolutions
UN Commission – Working Group III Papers
Model BITs
BITs/MITs
Model PSAs
PSAs
Other Sources
Awards and Cases
Content type
Categories
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