Arbitrating International Oil and Gas Disputes: Practical Considerations
Terri Truitt Griffiths, Timothy J. Tyler, 2000. "Arbitrating International Oil and Gas Disputes: Practical Considerations", International Oil and Gas Ventures: A Business Perspective, George E. Kronman, Don B. Felio, Thomas E. O’Connor, Mindy S. Kronman
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When an international oil and gas deal falls apart, parties will resolve their disputes by negotiation, litigation, or arbitration. If arbitration is not chosen and negotiations are fruitless, litigation will result. Because neither party wants to litigate a dispute in the other party’s hometown—which is especially true where one party is a foreign country or a state-owned oil and gas company—parties often choose arbitration. Leaving the matter to boilerplate forms, as often results when parties concentrate on the fiscal provisions, can result in uncollectible or unenforceable judgments or processes ill-suited to resolving a particular dispute fairly. These and other difficulties can be avoided by a basic knowledge of arbitration law and consideration of what potential disputes might arise in a particular deal. The following factors should guide the lawyer and client in drafting the arbitration clause: (1) types of disputes likely to arise (e.g., fact-intensive, technical, or purely legal); (2) the danger of being “hometowned”; (3) laws that should apply to various aspects of the agreement and the arbitration proceedings and their interaction; (4) other dispute resolution mechanisms as a precursor to arbitration or litigation; (5) how to obtain the information to prove potential claims or defenses; and (6) who should be bound by the arbitration clause.
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A “one-stop” business view on how to succeed in international exploration and production. Success in the international upstream arena requires more than the technical ability to find oil and gas. Relationships with governments and people, mutually beneficial contracts, workable strategies, and implementation plans are necessary to build strong, mutually beneficial, and profitable ventures. Key components that drive exploration and production in the global environment are examined. Specific topics include negotiating for success, contracts, the role of technology in international strategies, cross-cultural relationships, alliances, and international upstream financing. Authors from around the world, representing industry, governments, national oil companies, consultants, and academia, contributed their perspectives. Views are provided from both sides of the negotiating table, the corporate boardroom, the resident manager, the explorationist, the businessman, and the theoretician. Geoscientists, engineers, and negotiators, who are, or would like to be, involved in the global energy business will find this collection an important reference.