Oil and Gas Arbitration

Oil contracts naturally  are different  based on their terms and nature than  other contracts, whether they are agreed upon in the  domestic state  transactions or those agreed upon in the scope of the international transactions  according to the subject matter of these contracts and the contractual and legal relations  which they entail upon these contracts.

 Contracts of  oil and Gas  are different than other trading contracts that handle  productions and goods or trading  in different services  that begin and end at  the time of  completion of the commercial business  operation agreed upon between the parties to the various types of contracts.

Because Oil and energy contracts are always concerning  one of the country’s most important natural economic resources, crude oil or the  black gold , as it is usually called,  in addition to the minerals and other fluids associated with it in the subsoil,  require continued engagement and legal contracting for long periods of time among the companies involved in extracting oil and gas from the subsoil and between the sovereign States of these lands.

Contracts for the extraction of petroleum and minerals always take a variety of forms  confirming  the rights and obligations of the parties to these contracts that  are often running between the domestic countries  and the foreign companies that are  investing in oil extraction.

 The investment  Oil contract is known  as an agreement to be made by the oil producing countries or by a company or organization or by public entities that are affiliated to it  and  a foreign company  investing in oil extraction for the purpose of exploration, prospecting and searching  for oil and its production sites in a specific area in the territory of the Contracting State and for a period of time in regard for a specified  return or a share of the production to be  paid by the oil producing state to the contracted company in case of  discovering crude Oil in economic quantities.

In fact, Oil and gas contracts  concerning  searches and extraction  operations have multiple types  of contracts between the  domestic states and investment companies or between companies operating in the extraction of oil and ground minerals and each other according to the sequence of the production processes.

Beginning with the concession contracts that prevailed in the first half of this Century through contracts for participation in production, contracting contracts, and production-sharing contracts  that are signed between the hosting and domestic  state  for the investment and the extractive companies  in oil and other minerals  and also through various logistic deliveries required by all companies involved in oil extraction and other minerals from the subsoil, such as the supply of chemicals used to dig oil wells, mines and others through supply operations various equipment to be used in digging oil wells, such as various oil rigs, end with contracts for the transport of petroleum and mineral materials from areas  of Production to manufacturing and distribution sites .

 All these steps from the very beginning of extracting the crude oil  are  real subjects to the legal different contracts  that govern each of these processes,  aiming to get the  maximum profits when put on the market.

Hence, arbitration specializing in oil and energy contracts and other minerals in the subsoil are of utmost importance.

 Contracting legal relationships are not always smooth sailing and can be quite costly for oil and mineral extraction operations for  the parties involved.  The owners of these investments often prefer to resolve the disputes  that may arise between them through legal arbitration  of   specialized arbitrators evading  the ordinary long procedures  of  local  courts  that can  be extremely lengthy  to adjudicate in these legal disputes. Maintaining confidentiality and cost effectiveness are two major advantages of resorting to arbitration in addition to avoiding the displaying of these technical disputes that may contain different professional and industrial secrets in the public  local court hearings to preserve these industrial secrets.

Arbitration Pioneers, therefore,  pays great attention to arbitration in the contracts of petroleum, energy,  and minerals extracted from the land soil by both  the public and private sectors.  We have been assigned many cases from the private, public, and the general investment oil sectors to render arbitration awards in the fields of onshore and offshore petroleum discoveries worldwide.  Accordingly, Arbitration pioneers has the expertise to deal with these issues through research, study and the issuance of fair judgments that ensure the continuous interaction between  the parties involved in  the different disputes amicably after adjudication of the legal disputes between them by the Panel of specialized arbitrators registered on the lists  of Arbitration Pioneers.