THE ROLE OF ARBITRATION IN TRADE CONTRACTS IN INTERNATIONAL OIL INVESTMENT LAW AND ITS PROBLEMS

Abstract

    Companies operating in the field of oil and gas invest large amounts of capital, and therefore the disputes that arise in this activity are among the most important risks that must be taken into account in any project related to international energy (oil). It is imperative for the parties to the investment relationship in the fields of oil and gas, from the beginning of the deal, to manage these risks clearly. Accordingly, the parties to the contract are keen when formulating its terms to establish a     Companies operating in the field of oil and gas invest large amounts of capital, and therefore the disputes that arise in this activity are among the most important risks that must be taken into account in any project related to international energy (oil). It is imperative for the parties to the investment relationship in the fields of oil and gas, from the beginning of the deal, to manage these risks clearly. Accordingly, the parties to the contract are keen when formulating its terms to establish a mechanism for settling disputes, whether these parties are companies, individuals or governments, especially since foreign companies do not have the desire to resort to national courts due to lack of confidence in the impartiality of the national judiciary. Disputes occur between the investing company and the host country when the host country makes major changes in the terms of the original deal or when it withdraws the investment (concession) granted to one of the companies, whether the subject of stubbornness is the sharing of production between them. And between the host country or an extraction contract or a service provision contract. , especially since foreign companies do not have the desire to resort to national courts due to lack of confidence in the impartiality of the national judiciary. Disputes occur between the investing company and the host country when the host country makes major changes in the terms of the original deal or when it withdraws the investment (concession) granted to one of the companies, whether the subject of stubbornness is the sharing of production between them. And between the host country or an extraction contract or a service provision contract.