3vb david simpson - energy talk for ilfa

Dispute Resolutionin Energy Contracts

David Simpson, 3VB

3 VERULAM BUILDINGSGRAY’S INN, LONDON WC1R 5NTTEL: 020 7831 8441FAX: 020 7831 8479

[email protected] www.3vb.com

Types of dispute

• State v State• Investor v State• Investor v Investor• Third Party v Investor



Maritime boundary disputes

• United Nations Convention on the Law of the Sea 1982



Maritime Boundary Dispute resolution

• Interim options• “provisional arrangements of a practical nature” [Art 74(3)]• “joint development zones”




• Permanent options• “delimitation of the exclusive economic zone” •“equitable solution” [Art 74(1)]




• Negotiation




• Binding resolution• International Tribunal for the Law of the Sea• International Court of Justice• ad hoc




• Non-binding resolution• mediation• conciliation




• Involvement of investor• operate in disputed water• host government contract terms• assist government• ownership on both sides of boundary




CASE STUDY



Investor v State

• Investment treaties / ICSID• contractual dispute resolution



Investor v State

• Investment treaties• who is an investor?• what is an investment?



Investor v State

• ICSID• consent• investment• nationality• applicable law



Investor v State

• investment treaty claims• fair and equitable treatment• legitimate expectations• expropriation• failure to protect• umbrella clauses



Investor v State

• contractual dispute resolution• stabilisation clauses• mandatory renegotiation clauses• sovereign immunity clauses• dispute resolution



Investor v State

• remedies against states• specific performance?• damages for expropriation?



Investor v Investor

• Types of dispute• deadlock• default and dilution• loss of permits• HSE breaches



Investor v Investor

• Joint Operating Agreements• AIPN model clause• optional clauses



Investor v Investor

• procedural issues in arbitration• number of parties• subject matter • sovereign immunity• form of dispute resolution



Investor v Investor

• recent examples of English litigation• Tullow Oil v Heritage Oil• Excalibur Ventures LLC v Texas Keystone Inc • Energy Venture Partners Ltd v Malabu



Gas price review disputes

• indexation clauses• price review clauses• regular reviews• trigger events




• construction issues with “trigger” clauses• use of subjective words• definition of “market”, “market value”• definition of comparator

• methodology for revising the price




• examples of recent disputes• Gas Natural v Atlantic LNG • Esso Exploration v Electricity Supply Board



Individual v Investor

• third party commercial claims• asserting interests in contracts• payment of agency commissions




• tort claims• personal injury• breach of human rights• environmental claims




• tort claims• US Alien Tort Statute• vicarious liability• parent company control• piercing the corporate veil



Thank you

Welcome to London!

3vb david simpson - energy talk for ilfa

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