Lex Petrolea and international investment law : law and practice in the Persian Gulf / by Nima Mersadi Tabari.
2017
KMC747 .T33 2017 (Map It)
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Author
Title
Lex Petrolea and international investment law : law and practice in the Persian Gulf / by Nima Mersadi Tabari.
Published
Milton Park, Abingdon, Oxon ; New York, NY : Informa Law from Routledge, 2017.
Call Number
KMC747 .T33 2017
Former Call Number
Comp 956 T112 2017
ISBN
9781138656499 (hbk.)
1138656496 (hbk.)
9781315621883 (ebk)
1315621886
9781315621883
1138656496 (hbk.)
9781315621883 (ebk)
1315621886
9781315621883
Description
li, 294 pages ; 26 cm.
System Control No.
(OCoLC)939277828
Summary
"[This book] offers readers an ... analysis of jurisprudence on the settlement of upstream petroleum disputes between host states in the Persian Gulf and foreign investors. [The author] considers the historical, political, and socio-economic roots of the existing frameworks and levels of protection offered to foreign investors. With particular focus on petroleum-related disputes, he initially delivers a ... survey of the jurisprudence of international investment law and investment treaty arbitration. Following on from this, in three dedicated chapters, the author provides in-depth analysis of the legal regimes governing the matter in the major producers of the region: Saudi Arabia, Iraq, and Iran."-- Provided by publisher.
Bibliography, etc. Note
Includes bibliographical references (pages 255-283) and index.
Record Appears in
Table of Contents
Foreword
xvii
Acknowledgements
xix
Abbreviations and symbols
xxi
Cases and arbitral awards
xxv
International instruments
xxxix
Municipal instruments
xlix
ch. 1
Introduction
1
1.1.
Background
1
Iran
5
Saudi Arabia
6
Iraq
6
Cooperation and competition
7
Riyadh-Tehran
7
Baghdad-Tehran
8
Riyadh-Baghdad
8
Similar resource endowments and "club memberships"
9
Organisation of the Petroleum Exporting Countries
10
Gulf Cooperation Council
11
Arab League
13
Organisation of Islamic Cooperation
15
Dealing with the faithful
16
Legal risk
23
National oil companies
24
Admission of FDI
24
Domestic litigation v alternative dispute resolution
25
Political and social risk
25
Attracting foreign investment
25
International investment law and foreign direct investment in hydrocarbon resources
27
1.2.
Definitions
28
On the term "international investment law"
28
Investment dispute
29
Investment treaty arbitration
29
Arbitration without privity
29
International investment law as a field of legal scholarship
30
Investment treaty
30
General rules of international law
30
Customary international law
30
General principles of law
31
Judicial decisions, arbitral awards and doctrines
33
Common law of investment protection
34
Darwinian common law paradigm
36
On the term "lex petrolea"
38
1.3.
Scope of the book
39
1.4.
Outline and methodology of the book
40
Historical development
42
Legal pluralism
43
Common law of investment protection
44
common law hypothesis
44
International law
44
compliance hypothesis
44
paradox of compliance with double standards
46
Major hydrocarbon producers as subjects of the study
47
Working assumptions and goals
48
ch. 2
International Investment LAW
50
2.1.
Background
50
International investment law: A law made for FDI
50
Early jurisprudence and state-state investment disputes
51
Great War and the first wave of nationalisation
51
Permanent Court of Arbitration, ad hoc tribunals and mixed claims commissions
51
Permanent Court of International Justice
52
Decolonisation and the second nationalisation wave
52
Iran-US Claims Tribunal
54
International Court of Justice
54
2.2.
Development of the international investment law
55
Foreign direct investment: Emergence and evolution
55
FDI in ancient times
55
FDI and colonial empires
55
FDI in the modern era
55
Early investment disputes and their resolution
56
law governing all nations for all times
57
Jus gentium
57
Caliphate and the Ummah
58
Lex mercatoria
58
Conflict of laws
60
Treatment of aliens
60
Laws for foreign men and foreign lords
60
Jizya
61
Things which belong to men in common
61
Injury to the state of nationality
62
Diplomatic protection
62
Definition and origin
62
Espousal of diplomatic protection as assertion of the right of the injured state
62
Diplomatic protection, gunboat diplomacy and capitulation
63
Colonial stigma
63
imminent peril exception
63
Diplomatic protection as a method of protecting FDI
64
Evolution of the standard of treatment
65
Common standard of civilised nations
65
Calvo doctrine
66
Calvo clause
67
Neer standard
68
Hull rule
69
Codifying the treatment and protection standards
70
Early attempts
70
From protection of foreign property to promotion of international economic development
71
Abs-Shawcross Draft
71
Harvard Draft
72
Treaties of friendship, commerce and navigation
73
New international economic order
73
Bilateral investment agreements
74
Early BITs
74
OECD Convention on Protection of Foreign Property
75
BIT revolution
75
International Centre for Settlement of Investment Disputes
77
convention and the centre
77
Dispute resolution under ICSID
77
ICSID additional facility
78
future of ICSID
78
Multilateral investment treaties
79
OECD
79
WTO
80
Energy Charter Treaty
80
Chapter 11 of the North American Free Trade Agreement
80
World Bank guidelines on the treatment of FDI
81
2.3.
International investment dispute-resolution regime
82
In pursuit of peaceful dispute resolution
82
Investor-state arbitration under investment treaties
83
Consent to arbitration
83
Arbitration without privity
84
Methods of consent
84
Fork-in-the-road clause
86
Cooling-off period
86
Applicable law in investment treaty arbitration
87
Lex arbitri
87
Law applicable to the arbitration agreement
87
Lex causae
88
International law
88
Domestic law
88
Decisions of domestic courts
89
Treaty interpretation
90
Vienna Convention of the Law of Treaties
90
Recognition and enforceability
91
New York Convention
92
ICSID
93
2.4.
Ambit of protection in international investment law
93
Foreign investor
94
Nationality of natural persons
95
Genuine connection test
95
Nationality of natural persons in investment treaty arbitration
96
Nationality of legal persons
96
Formalistic test
97
Control test
98
Ownership
98
De jure control versus de facto control
99
Direct and indirect control
99
Piercing the corporate veil
100
Shell corporations
100
Nationality of convenience
100
Round-tripping and migration of companies
101
Denial of benefits
102
Rights of shareholders
102
Equity ownership as investment
103
Investment
104
Interpretation of the term "investment"
106
Umbrella clause
107
ICSID jurisdiction
108
Consent
109
Jurisdiction ratione personae
110
Jurisdiction ratione materiae
112
"duck" test
113
double-barrel test
114
2.5.
Substantive protections in international investment law
116
National treatment
116
test: Appropriate comparator
117
Most favoured nation treatment
118
test: Appropriate corresponding treatment obligation
119
Expropriation
120
Partial expropriation
120
Indirect expropriation
121
sole effect doctrine
121
test: Substantial deprivation
122
Creeping expropriation
123
Non-compensable state measures
123
Lawful expropriation
124
Fair and equitable treatment
125
Legitimate expectations
126
Denial of justice
126
Transparency
127
Arbitrary and discriminatory actions
127
Full protection and security
128
Scope of application
128
Legal protection
129
Moral damages
129
ch. 3
Lex Petrolea
130
3.1.
Background
130
Ubi societas, ibi ius
132
Unique identity
132
Unique challenges
133
Inherent risks
133
Risks inherent in E&P projects
133
Risks inherent in E&P agreements
134
Risks associated with sovereignty and applicable law
134
Upstream hydrocarbon agreements
135
Production sharing contracts
136
Risk service contracts
136
Concessions
137
Tax royalty contracts
137
Energy Charter Treaty
138
Two faces of Janus
139
Internationalisation
139
International and quasi-international character
140
Party autonomy
141
Permanent sovereignty
141
Stabilisation clause
143
Renegotiation and adaptation
143
Force majeure clause
144
Hardship clauses
144
Renegotiation clause
145
3.2.
Ambit of protection in lex petrolea
145
Upstream enterprise as investment
146
Attribution of the conduct of the national hydrocarbon company to the host state
147
3.3.
Substantive protections in lex petrolea
149
National treatment and most favoured nation treatment
149
Expropriation
149
Fair and equitable treatment
150
ch. 4
Iran
152
4.1.
Background
152
4.2.
Iranian oil; a historical perspective
153
Age of concessions
153
Reuter concession
153
Hotz and the Persian Bank Mining Corporation
154
Tobacco uprising
154
D'Arcy concession
154
Burmah Oil Company and the concessions syndicate
155
Anglo-Persian Oil Company
155
Constitutional revolution
156
Russo-Japanese war
156
Constitutional monarchy
157
Civil war
158
1919 Anglo-Iranian agreement
158
Armitage-Smith agreement
159
Fall of the Qajar
160
1933 agreement
160
Anglo-Iranian Oil Company
162
Oil and free speech
163
Shah is exiled, long live the Shah
163
calm before the storm
163
Nationalisation
164
old man's dream
164
old man's nightmare
165
Anglo-American coup d'etat
165
consortium
166
Joint ventures
167
Risk service contracts
168
St Moritz purchase and sale agreement
168
Islamic revolution
169
imposed war
170
National Iranian Oil Company
170
Economic and financial sanctions
171
Security Council resolutions
171
US sanctions
172
EU regulations
173
Impact: To evade, or to avoid, that is the question
174
4.3.
legal regime governing Iranian oil and gas
175
Islamic Republic of Iran Constitution 1979 (as amended in 1989)
175
Islamic republic's political and legal regime
175
Guardianship of the jurist
175
State structure
176
Leader
177
Majles and the Guardian Council
177
Expediency Council
179
President and the cabinet
179
Judiciary
180
Economic model and ownership of natural resources
181
Petroleum Act of 1987
181
Five-year development plans
182
Foreign Investment Promotion and Protection Act 2002
183
Foreign Investment Board
183
Overview of FDI protection under FIPPA
184
Iranian foreign investment framework and the model bilateral investment treaty
185
Investment
186
Investor
187
Standard of treatment
187
Expropriation and nationalisation
188
Compensation
188
Dispute resolution
188
Iranian buy-back contract
189
Remuneration and cost recovery
189
Risks
190
Supervision
190
Environment, employment law, training, health and safety
191
Dispute resolution and applicable law
191
4.4.
Iran: Conclusion
192
Iranian FDI protection regime
192
Iranian upstream FDI protection regime
193
ch. 5
Iraq
195
5.1.
Background
195
5.2.
Iraqi oil; a historical perspective
196
Ottoman years
196
Turkish Petroleum Company
197
Young Turks
197
Drawing lines in the sand
198
Faisal of Syria to Faisal of Iraq
199
Iraq Petroleum Company
199
1925 concession
200
Basra Petroleum Company
200
Mosul Petroleum Company
201
Of kings and officers
201
Al-Ahali coup
201
infant king
201
second British invasion
202
Watbah
202
1948 Arab-Israeli war
202
First oil boom
202
Baghdad Pact
202
republic of Iraq
203
dictator
203
Rise of the Baathists
203
Nasserist revival
203
Saddam and the Tikritis
204
Second oil boom
204
Persian bete noire
204
Gulf wars
205
How to deal with creditors
205
Known unknowns and the invisible WMDs
205
Nationalisation of Iraqi oil
206
Getting the upper hand
207
In pursuit of control
207
Iraq National Oil Company
208
Early risk service contracts
208
Soviet aid
209
final step
209
Complete state control
209
5.3.
legal regime governing Iraqi oil and gas
210
State structure
210
Executive
210
Legislature
210
Federalism
211
Judiciary
212
Ownership and management of resources
212
Revenue distribution
213
Iraqi foreign investment framework
214
Investment Law 13
214
Investment and investor
215
Standard of treatment
216
Hydrocarbon Law drafts
216
INOC and Federal Oil and Gas Council
216
Contracts
217
Review
218
first and second bidding rounds
218
third and fourth bidding rounds
218
Dispute resolution
219
5.4.
Kurdish oil
219
Kurdish question
219
Kurdistan regional government and ownership of Kurdish oil
221
Management
221
Revenues
221
Kurdish foreign investment framework
222
Kurdistan Investment Law 4 (2006)
222
Kurdistan Oil and Gas Law
222
(2007) and Model PSC
222
5.5.
Iraq: Conclusion
223
Iraqi FDI protection regime
223
Kurdistan and FDI protection
224
Iraqi upstream FDI protection regime
224
Kurdistan and upstream FDI protection
224
ch. 6
Saudi Arabia
225
6.1.
Background
225
6.2.
Saudi oil; a historical perspective
225
Puritans of Najd
226
Aal-Sheikh and Aal-Saud
226
brothers
227
Birth of the petro-state
227
1933 concession
227
ARAMCO
228
billionaire
229
Renegotiation
229
Tale of two concessions
229
Saudi Aramco
230
Age of reform
230
6.3.
legal regime governing Saudi oil and gas
231
State structure
232
King and constitution
232
Basic law
232
Council of Ministers
232
Consultative Council
233
Judiciary
233
Diwan Al-Mazalim
233
Saudi foreign investment framework
234
WTO
234
Investment law
235
Investor and investment
235
Admission
235
Treatment
235
BITs
236
Investment and investor
236
Treatment
236
Dispute resolution
237
Alternative dispute resolution
237
ICSID
238
6.4.
Saudi Arabia: Conclusion
238
Saudi FDI protection regime
238
ch. 7
Conclusion
240
7.1.
Common law of FDI protection
240
7.2.
Lex petrolea
241
7.3.
Conclusion
241
Appendix A: Model Iranian buy-back contract
245
Bibliography
255
I.
Arabic resources
255
II.
English resources
255
III.
French and Latin resources
280
IV.
Persian resources
281
V.
Online databases and websites
282
Index
285