Oil discussion ADCCAC : A standard arbitration clause has been drafted and adopted
A standard arbitration clause has been drafted and adopted, through discussions and mutual consent between the concerned parties, and inserted i the agreements referred to.
This standard “arbitration clause” reads as follows: The Parties shall use their best efforts to settle all disputes or claims arising out of or in relation to this Agreement or any breach thereof. Should any difference or dispute of any kind arise between the Parties in connection with or arising out of this Agreement which cannot amicably be resolved within three hundred and sixty (360) days, then such difference or dispute shall be settled finally by arbitration in Abu Dhabi under the Procedural Rules of the Abu Dhabi Commercial Conciliation and Arbitration Center ADCCAC. by three (3) arbitrators, one to be nominated by each party and the third to be agreed by the two nated and failing such agreement the third arbitrator to be appointed.
The Secretary General of ADCCAC from the intl usual panel arbitraton maintained by ADCCAC All arbitration Rigged shall be in English and the award of the arbitrator shall in accordance with the laws of Abu Dhabi and the United Au Emirates The award shall be final and binding upon ba When comparing this new arbitration clause with Article the Deminex Concession Agreement of l9Hl, one cannot rail notice the important improvements introduced in the new clause concerning the procedural rules and regulations under which arbitration is to be conducted the venue of arbitration, “appointing authority,” or the applicable law, The adoption of new arbitration clause in recent agreements between national companies and foreign partners reflects a radical change in the climate of the relationships between foreign oil companies and the host country(or its national company) and indicates confidence on the part of foreign oil companies in the local legal infra structure and institutions of the host country.