The role of arbitration in the promotion of oil investment

Abstract

     Oil and gas companies invest large amounts of capital, so the conflicts that arise in this activity are among the most important risks to be considered in any international energy project. The parties to the contract are keen to formulate a dispute settlement mechanism, whether they are companies, individuals or governments. In particular, foreign companies have no desire to resort to national courts for lack of confidence in the impartiality of the national judiciary. Disputes between the investing company and the host State occur when the host State makes significant changes to the terms of the original transaction or when it withdraws the investment (concession) granted to a company and whether the subject of the contract is the production sharing between it and the host State or a contract of extraction or service contract.