The agreement the force of law This is classic clause since the time of the old-style concessions, of el effectiveness is presently contested by some students agreements, who believe that such a clause cannot transform th nature of the contractual provisions into statutory rules adapt time.
Under particrt of two idea Its oil Tas LEGAL Frameworks FOR TIEL DEVELOPMENT o PETROUELM Resource’s Paragraph G also stipulates that the groveling law should be-the principles of law normally recognized by civilized states in general including those which have been applied by international tribunals.” This is also a classic clause about which some authorities in this field have reservations. They highlight the present difficulty of reaching consensus those general on principles of law applicable throughout the world to all kinds of relationships between investors and host countries. s Article 38, entitled “Better Terms provides for a form of adaptation clause or a “most favored nation clause” in the following If in the future, arrangements made between the government of Abu Dhabi and any other states in the Middle East or the agent of such a government and the company or any other company companies operating in the petroleum industry as a result of which an increase in benefits should accrue generally to all such governments as aforesaid, then the government and the company shall review and discuss the changed circumstances within the petroleum industry in order to decide whether any alteration to the terms of this agreement would be equitable to both parties.
Article 44 provides for government options to acquire, at any time after the discovery of oil in commercial quantities, a participating interest of up to 60 percent in all rights and obligations under the agreement. It then determines, in paragraph(B), the basis of calculating the payment to be made by the government for such participation:
B. The government shall pay for such participating interest a sum equal to sixty(60) percent or such lesser proportion as the government shall have elected to acquire of the total accumulated costs and expenses recorded in the books of the company or of the operating company as the case may be as at the date of discovery of crude oil in commercial quantities(excluding the bonus and rentals paid by the company before the date of discovery of crude oil in commercial quantities
MEN PETROL a referee, the President of the International Court of Justice may appoint a referee, at the request of the arbitrators or either of them in the case of a dinerence of The decision of the arbitrators or, of the reteree, shall be opinion between them, the decision final and binding on both parties during
D. The decision shall specify an adequate period of time shall which the party against whom the decision is given conform to the decision and that party shall be in default only if that party has failed to conform to the decision prior to the expiry of that period and not otherwise
E. The place of arbitration shall be Abu Dhabi or elsewhere at the discretion ofthe referee.
F. The referee shall determine the procedure of the arbitration being guided generally by the relevant rules of procedure established by Articles 32-69 inclusive of the Rules of the International Court of Justice of May 6th, 1946
G. This Agreement shall have the force of law. lt shall be given effect and shall be interpreted and applied in conformity with the principles of law normally recognized by civilized states in general including those which have been applied by international tribunals. This article warrants certain remarks: Paragraph B entrusts the President of the International Court of Justice to appoint a referee, in the case of failure of the two parties to agree, and Paragraph F states that the referee, in determining the procedure of the arbitration, shall be guided generally by the relevant rules of procedure of the International Court of Justice. These provisions carry connotations of an”international” dimension to the agreement or dispute.