Concept in oil The first Secretary-General of oPEC

The first Secretary-General of oPEC,  explains reasons behind the adoption of the arbitral concept in oil concession Lijn general,  there is considerable international support for the opinion that for the settlement of trade disputes arbitration is preferable to judicial procedure even where domestic differences are concerned,  for reasons which seem to be universally recognized;  arbitration is less rigid,  less costly,  and less dilatory than the normal judicial procedure.

Furthermore,  persons who invest capital on a large scale in a foreign country feel more secure having an assurance that,  if a dispute arose between them and the host country,  they would not be subject to the strict legal system of the country.  of which they are often ignorant and which they may fear may be applied with less than complete impartiality in cases involving foreigners well known that petroleum investments require large amounts of capital and advanced technology and that the element of risk,  which is usually borne by the foreign oil company,  is very high.

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