ENERGY AND INTERNATIONAL LAW

• Jurisdiction: Derecho Internacional

Mining and Oil and Gas Law, Development, and Investment - Book 2
(Apr 2007)
CHAPTER 23A
ENERGY AND INTERNATIONAL LAW
Luis Erize
Attorney
Abeledo Gottheil Abogados SC
Buenos Aires, Argentina

Investments conflicts concerning energy matters currently existing in Latin America: status and evolution

Abeledo Gottheil Abogados SC

Gottheil-Garcia Cozzi-Erize

Energy and International Law

• Major conflicts in Latin America subject to arbitration:

• Luchetti v. Peru*

• Oxy v. Ecuador (Duke, idem)*

• Aguas del Tunari v. Bolivia*

• Bolivia: "migration" of O&G upstream, YPFB's aggregator role, increase

o Govt.'s take (IDH), theory of hollow nucleus (the ring)

• MTD v. Chile*

• Autoven v. Venezuela*

• Conversion/transition of Service agreements into JOAs, PSAw/PDVSA

• The Argentina cases O&G, gas transp.&dist., power gen, electricity distribution, water, telecom, etc.

• Mexico Nafta cases

[Page 23A-2]

• Investor's standing:

• Mexican Eagle co. (1938)*

• Barcelona Traction, Light and Power*

• Elsi v. Italy*

• Goetz*

• Tokios Tokeles v. Ukraine*

• Maffezzini v. Kingdom of Spain*

• CMS v. Argentina

• Siemens v. Argentina

• Loewen: the continuing nationality*

• Lucchetti v. Peru: the relevant time for the investment

• Argentina cases where jurisdiction has been affirmed:

• CMS*

• Azurix

• LG&E

• Enron

• Siemens

• AES

• Sempra

• Camuzzi

• Gas Natural

• Vivendi (I, II and III)*

[Page 23A-3]

• The most favoured Nation Clause. Current status

• Maffezzini v. Kingdom of Spain*

• MTD v. Chile*

• Arbitrarious or discriminatory treatment (implying double standard) as a prerequisite?*

• Matters of Arbitrability:

• Breach of Contract and Breach of Treaty:

• Salini Costruttori v. Kingdom of Morocco*

• SPP (Middle East) v. Egypt

• SGS v. Pakistan*

• SGS v. Philippines*

• Occidental v. Ecuador (citing Lauder, Genin, Vivendi,CMS and Azurix)*

• Waste Management v. Mexico

• Mondev*

• Vivendi Annulment Award*

• Umbrella Clauses & the Standard of Full Protection (contracts "elevated" to International Law undertakings)

• SGS v. Pakistan

• Pope & Talbot v. Canada*

• Aramco*

[Page 23A-4]

• Enforcement of Arbitral Awards

• Wena Hotels Limited v. Egypt: Stay of Enforcement (no suspension otherwise by Annulment application) with the posting of a security.

• Sovereign Inmunity from Execution, retained (Convention, 55)

• International Responsibility of Sovereign States

• Topco/Calasiatic- Libia

• Vivendi v. Argentina I, on Jurisdiction*

• ILC Articles on State Responsibility for unlawful acts*

• Repudiation of Contractual Undertakings

• Creeping Expropriation (Metalclad & the implementation of Measures)*

• Discrimination & No Less Favorable Treatment than Nationals

[Page 23A-5]

• Fork-in-the-road clause and domestic jurisdiction contract clause

• Lanco v. Argentina

• Vivendi v. Argentina I and II*

• Maffezzini v. Kingdom of Spain

• Azinian v. Mexico

• Occidental v. Ecuador, citing Lauder, Genin,* Vivendi, CMS and Asurix*

• USA: Claimant before an international tribunal must maintain the qualifying nationality until the date of the award?

• requirement of continuous nationality to the end of any international proceeding

(Loewen v. USA)

[Page 23A-6]

• MTD v. Chile:

• General nature of MFNC makes it applicable unless specific exceptions (ie. Taxes and regional cooperation)

• Treatment no less favorable than that accorded to third State's investors

• 116.... Neer and like arbitral awards were decided in the 1920s, when the status of the individual in international law, and the international protection of foreign investments, were far less developed than they have since come to be. ..it is unconvincing to confine the meaning of "fair and equitable treatment" and "full protection and security" of foreign investments to what those terms -- had they been current at the time -- might have meant in the 1920s when applied to the physical security of an alien...