The Efficacy of International Arbitration in Resolving Upstream Oil And Gas Disputes: Legal and Commercial Perspectives

References

[1] LL. B (Hons), LL.M, PhD, Notary Public, MCIArb, FGAN, MPA, Coordinator, Postgraduate Studies, Faculty of Law, Abia State University. Umuahia, Abia State, Nigeria Tel: 0803-310-4174, Email: sec01nwosu@gmail.com

[2] Aust, A. (2013). Modern Treaty Law and Practice (2023) 2nd ed. Cambridge University Press, p.159 Ibid.

[3] ICSID; Convention on the Settlement of Investment Disputes between States and Nationals of Other States, 1965.

[4] Yukos v. Russian Federation [2023] EWHC 2704.

[5] Gaukrodger, D., & Gordon, K. (2012). Investor-State Dispute Settlement: A Scoping Paper for the Organisation for Economic Co-operation and Development (OECD).

[6] Redfern, A., and Hunter, M.; Law and Practice of International Commercial Arbitration, London, Sweet & Maxwell, 2009, p. 89

[7] Blackaby, N., Partasides, C., Redfern, A., and Hunter, M., Redfern and Hunter on International Arbitration, Oxford, OUP, 2023, p. 122.

[8] Cairn Energy Plc v. Republic of India (PCA Case No. 2016-7).

[9] Wälde, T.W., ‘Energy Charter Treaty-based Arbitration: Legislative and Policy Implications’, Journal of World Energy Law & Business, 1(1), 2008, p. 55.

[10] LCIA, LCIA Arbitration Rules, London Court of International Arbitration, 2020. Ibid.

[11] UNCITRAL Arbitration Rules, United Nations, 2010.

[12] Tullow Oil v. GNPC (Civil Application 1 of 2020) [2020] KESC 49 (KLR) Redfern, A., and Hunter, M., Law and Practice of International Commercial Arbitration, (London, Sweet & Maxwell, 2009), p. 153. Ibid.

[13] Article 54of ICSID Convention. Wälde, T.W.; ‘Energy Charter Treaty-based Arbitration: Legislative and Policy Implications’, Journal of World Energy Law & Business, 1(1), 2008, p. 55.

[14] UNCITRAL; UNCITRAL Model Law on International Commercial Arbitration, United Nations, 2006.

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[16] United Nations; Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), 1958.

[17] Born, G. B.; International Commercial Arbitration, The Hague, Kluwer Law International, 2021, pp. 734–768.

[18] Ibid. See also ICSID; Convention on the Settlement of Investment Disputes between States and Nationals of Other States, 1965. https://icsid.worldbank.org/resources/rules-and-regulations/convention, accessed 10 May 2025.

[19] Karaha Bodas v. Pertamina 190 F. Supp. 2d 936 UNCITRAL; UNCITRAL Arbitration Rules, United Nations, 2013. https://uncitral.un.org/en/texts/arbitration/contractualtexts/arbitration, accessed 10 May 2025.

[20] Redfern, A., and Hunter, M., Law and Practice of International Commercial Arbitration, (London, Sweet & Maxwell, 2009), pp. 257–270. BP v. Libya 53 I.L.R. 297 (1979)

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[22] UNCITRAL; Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), 1958. https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards, accessed 10 May 2025.

[23] Article V of New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Ibid.

[24] Occidental Petroleum Corporation v. Ecuador ICSID Case No. ARB/06/11 ICSID, Convention on the Settlement of Investment Disputes between States and Nationals of Other States, 1965. https://icsid.worldbank.org/resources/rules-and-regulations/convention accessed 10 May 2025.

[25] Energy Charter Secretariat; The Energy Charter Treaty and Related Documents, 1994. https://www.energycharter.org/process/energy-charter-treaty-1994/energy-charter-treaty/ accessed 10 May 2025.

[26] ICC, Rules of Arbitration, International Chamber of Commerce, 2021. https://iccwbo.org/dispute-resolution-services/arbitration/rules-of-arbitration, accessed 10 May 2025.

[27] Redfern, A., and Hunter, M.; Law and Practice of International Commercial Arbitration, London, Sweet & Maxwell, 2009, pp. 241–262.

[28] Franck, S. D, ‘Empirically Evaluating Claims about Investment Treaty Arbitration’, North Carolina Law Review, 86(1), 2007, pp. 1–88. https://scholarship.law.unc.edu/nclr/vol86/iss1/1. Accessed 10 May 2025.

[29] LCIA, Arbitration Rules (2020), London Court of International Arbitration. https://www.lcia.org/Dispute_Resolution_Services/lcia-arbitration-rules-2020.aspx. Accessed 10 May, 2025.

[30] LCIA, Arbitration Rules (2020), London Court of International Arbitration. https://www.lcia.org/Dispute_Resolution_Services/lcia-arbitration-rules-2020.aspx. Accessed 10 May, 2025.

[31] Permanent Court of Arbitration; Yukos Universal Limited (Isle of Man) v. Russian Federation (PCA Case No. AA 227). https://pca-cpa.org/en/cases/5/. Accessed 10 May, 2025.

[32] Permanent Court of Arbitration; Yukos Universal Limited (Isle of Man) v. Russian Federation (PCA Case No. AA 227). https://pca-cpa.org/en/cases/5/. Accessed 10 May, 2025.

[33] Permanent Court of Arbitration; Yukos Universal Limited (Isle of Man) v. Russian Federation (PCA Case No. AA 227). https://pca-cpa.org/en/cases/5/. Accessed 10 May, 2025.

[34] Redfern, A., and Hunter, M., Law and Practice of International Commercial Arbitration, (London, Sweet & Maxwell, 2009), pp. 308–335

[35] UNCITRAL, Rules on Transparency in Treaty-Based Investor-State Arbitration, United Nations, 2014. https://uncitral.un.org/en/texts/arbitration/transparency. Accessed 10 May, 2025.

[36] Chevron v. Ecuador citation 795 F.3d 200 (2015) ICSID; Rules and Regulations (2022 Amendments). https://icsid.worldbank.org/resources/rules-and-regulations/amendments, accessed 10 May, 2025.Ibid

@article{1711071,
      author = {Dr. S.E.C. Nwosu},
      title = {The Efficacy of International Arbitration in Resolving Upstream Oil And Gas Disputes: Legal and Commercial Perspectives},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {9},
      number = {4},
      pages = {1269-1278},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1711071.pdf},
      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.},
      month = {October},
  }