The Efficacy of International Arbitration in Resolving Upstream Oil And Gas Disputes: Legal and Commercial Perspectives
Abstract
The article explores the efficacy of international arbitration in resolving upstream oil and gas disputes from both legal and commercial perspectives. The aim is to critically analyze the role of arbitration in managing disputes in this sector, focusing on key legal frameworks, institutional mechanisms, and commercial considerations that impact the dispute resolution process. The objectives are to examine the legal foundations underpinning international arbitration, explore the commercial benefits and challenges it offers to parties, and assess case studies that highlight its practical application. The methodology employed involves a qualitative analysis of relevant literature, case studies, and international arbitration rules, along with a critical review of key legal frameworks like the Energy Charter Treaty (ECT), the ICSID Convention, and UNCITRAL rules. The findings reveal that international arbitration is widely regarded as an effective means of resolving complex disputes in the upstream oil and gas sector, with institutions such as ICSID, ICC, and UNCITRAL offering reliable frameworks for arbitration. However, challenges persist, including issues surrounding sovereign immunity, lack of transparency in ISDS mechanisms, and the risk of parallel proceedings, which can hinder the efficiency of dispute resolution. Case studies such as Yukos v. Russian Federation, Occidental Petroleum v. Ecuador, and Tullow Oil v. Ghana highlight the strengths and weaknesses of arbitration, particularly concerning enforcement and political sensitivities. In conclusion, while international arbitration provides a robust and impartial forum for dispute resolution, it faces significant challenges that need addressing. The article recommends that future reforms should focus on enhancing enforcement mechanisms, improving transparency, and streamlining procedures to address parallel proceedings and jurisdictional conflicts. By adopting these reforms, international arbitration can continue to be an effective tool in resolving upstream oil and gas disputes, ensuring fairness and predictability for both investors and host states in the dynamic energy sector.
Keywords
International Arbitration, Upstream Oil and Gas, Commercial Arbitration, Dispute Resolution.
Citations
IRE Journals:
Dr. S.E.C. Nwosu
"The Efficacy of International Arbitration in Resolving Upstream Oil And Gas Disputes: Legal and Commercial Perspectives" Iconic Research And Engineering Journals Volume 9 Issue 4 2025 Page 1269-1278
IEEE:
Dr. S.E.C. Nwosu
"The Efficacy of International Arbitration in Resolving Upstream Oil And Gas Disputes: Legal and Commercial Perspectives" Iconic Research And Engineering Journals, 9(4)
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