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www.landoltandkoch.com © Phillip Landolt, 2011 Dr Phillip LANDOLT LANDOLT & KOCH 17, rue du Mont-Blanc CH-1201 Geneva E-mail: phillip@landoltandkoch.com Tel. +41 22 311 00 55 Fax +41 22 311 00 54 Focus: ENERGY DISPUTE RESOLUTION IN ARBITRATION
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www.landoltandkoch.com © Phillip Landolt, 2011 Outline Why and why not arbitration in energy dispute resolution? Typical issues in energy arbitrations A word about investment arbitration Three illustrative and current cases
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www.landoltandkoch.com © Phillip Landolt, 2011 Why arbitration? Contracts in the energy sector tend to be international and long-term Arbitration is the preferred binding dispute resolution mechanism in international matters Arbitration is flexible Also: confidentiality Investment arbitration
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www.landoltandkoch.com © Phillip Landolt, 2011 Why not? Arbitrators lack judges coercive powers Problems of multiparty disputes
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www.landoltandkoch.com © Phillip Landolt, 2011 Typical issues in energy arbitrations Change of circumstances in long-term contracts –Force majeure –Hardship –Price review
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www.landoltandkoch.com © Phillip Landolt, 2011 A word about investment arbitration Bilateral investment treaties Multilateral investment treaty in the energy sector – the Energy Charter Treaty of 1994 International Center for the Settlement of Investment Disputes (ICSID) Special issues of jurisdiction Special rights for investors – public international law
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www.landoltandkoch.com © Phillip Landolt, 2011 Egypt - Israel natural gas transmission dispute Parallel arbitrations Corruption allegations Does the US-Egypt BIT apply? A substantive violation of the US-Egypt BIT?
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www.landoltandkoch.com © Phillip Landolt, 2011 Vattenfall nuclear power stations in Germany Application of the Energy Charter Treaty An investment? Substantive rights Concerns about regulatory chill and a modern States ability to introduce more stringent environmental regulations
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www.landoltandkoch.com © Phillip Landolt, 2011 EU embargo on Syrian petroleum products Availability of investment arbitration? Potential effects of embargo on commercial contract rights
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www.landoltandkoch.com © Phillip Landolt, 2011 Thank you!
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