The Abu Dhabi oil Experience: Certain Recent Developments International arbitration

The Abu Dhabi oil Experience:  Certain Recent Developments International arbitration

The present case were not in themselves unlawful The tribunal concluded that an award declaring that the nationalization laws were ineffective to transfer rights under the concessions would be contrary to the right to nationalize and were practically unenforceable.  It was determined that the right for compensation existed and LIAMCO was entitled to it The compensation was calculated by adding claim for value of plant and equipment,  loss of concession,  interest and costs The decisions in the AMINOIL and Libyan nationalization cases have been published.

Commenting on these and similar arbitration cases,  Lord Wilberforce said at an International Law Association(LA)  meeting in 1981 arbitrator tow a huge industry concerned with divan between much states and powerful multinationals This meant the people involved In this business are now the foremost law The big bains.

It means that they are making law making the top level from which it will filter down to national domestic the traditional process of domestic Io Professor Richard Bentham makes the following remarks on contribution of the awards in those international arbitration cases to building a new lex Mercator and to providing an appropriate framework for the resolution of disputes arising under petroleum-Arbitration and the law developed from it are essential to maintain and fester world trade,  and it is probably not an exaggeration to say that the decisions of arbitral tribunals are at present building a new Mercator a new law for international trade a law which may help to resolve the continuing conflict between the concepts of stent serum on the one hand and”changing circumstances on the other.

The Abu Dhabi Experience:  Certain Recent Developments International arbitration has been adopted as a method of settling disputes in Abu Dhabi oil concessions as in other oil concessions throughout the Middle East.  Since the original old-style concessions,  through those granted in the period 1967-1971.  up to and including the most recent concessions of 1980-1981,  arbitration has been incorporated as a method for settling disputes,  with certain changes being implemented in the drafting of the arbitration clauses of these successive agreements.  The text of Article 15 of the original oil concession of 1939 dealing with the settlement of disputes has already been quoted above.  Reference has also been made to the Abu Dhabi arbitration case of 1951.  which arose under the 1930 concession and which is,  till incidentally,  the only oil arbitration case arising under a petroleum which Abu Dhabi was involved.

It is interesting in concession in this context for the sake of comparison,  to refer to the way the arbitration clauses included in the most recent concession reements of 1980-1981 were drafted.  Here we take as an example,  for illustrative purposes,  the arbitration clause in one of the most recent of these agreements the oil concession agreement with Deminex of May 3,  1981.  Article 35 of this agreement deals with arbitration(the full text of this Article was quoted in Chapter 2 when reviewing the provisions of the Deminex Agreement).  No concession agreements have been concluded in Abu Dhabi since 1982.  We therefore do not know for sure how the arbitration clause would have been drafted in newer concession agreements.

However,  a most interesting development in the Abu Dhabi oil industry concerns the methods of dispute settlement reflected in certain recent agreements concluded between ADNOC and groups of oil companies operating in Abu Dhabi including some of the majors or separate companies.  Although these are not in the form of concession agreements,  some of them relate to joint venture arrangements and technical or management services,  etc.

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