Case report (free download)
Case Report by Tammi C. Pilgrim and Anastasiya Ugale
In the unanimous Award rendered on July 10, 2015, the Tribunal decided that it had jurisdiction over the First Respondent, the Republic of Yemen, and upheld the Claimants' claims that: (1) a Force Majeure period of over 6 months existed, thereby entitling the Claimants to terminate three Product Sharing Agreements ("PSAs") entered into with the Yemeni Ministry of Oil and Minerals; (2) the Claimants validly terminated the PSAs; and (3) the Respondents were and are not entitled to draw down on three related standby letters of credit issued by the International Bank of Yemen on August 9, 2008. However, the Tribunal denied the Claimants' claim that the Respondents should return bonus payments made to them under the PSAs. Finally, the Tribunal dismissed all of the Respondents' counterclaims claiming entitlement to draw down on the said standby letters of credit, and entitlement to monetary compensation for the Claimants' failure to perform the PSAs. The Tribunal awarded the Claimants 75% of their costs of the arbitration, including 40% of the costs and expenses incurred by the Claimants in extending the standby letters of credit for the benefit of both parties (as ordered by the Tribunal in a previous procedural order).
Jurisdiction - agency - choice of law; Interpretation of "Force Majeure" - applicability of substantive law to contract.
Gujarat State Petroleum Corporation (India), Alkoor Petroo Limited (India), Western Drilling Contractors Private Limited (India) v. Republic of Yemen (Yemen), The Yemeni Ministry of Oil and Minerals (ICC Case No. 19299/MCP) - Final Award - 10 July 2015
Case report provided by International Arbitration Case Law (IACL)