Summary

Order

Before the Court are Respondent's Motion to Dismiss for Lack of Personal Jurisdiction (the "Motion") (Doc. #10), Petitioner's Response (Doc. #13), Respondent's Reply (Doc. #20), and Petitioner's Petition and Memorandum of Law to Confom Arbitral Award (the "Petition") (Doc. #1, Ex. 1 ). Having reviewed the parties' arguments and applicable legal authority, the Court grants the Motion.

I. Background

Petitioner First National Petroleum ("Petitioner" or "FNP") initiated this action to confirm a 2018 arbitral award in its favor against Respondent OAO Tyumenneftegaz ("Respondent" or "TNG") (the "Award"). Doc. #1, Ex. 1. At issue in the arbitration were various disagreements over the performance of a contract between FNP and TNG to establish a joint venture "for the comprehensive development of the Kalchinsk oil field and adjacent territories in [the] Tyumen region of Russia" (the "Agreement"). Doc. #1, Ex. 1 ¶ 6; Doc. #10 at 3; Doc. #14, Ex. I § 1.1.

Ultimately, after the arbitration panel held that FNP was entitled to damages for TNG' s breach of certain provisions of the Agreement and of its duty to loyalty owed under the Agreement, the panel awarded FNP "USD 70,000,000.00, together with interest" for the breach and "EUR 264,700.00, .. . plus interest" for arbitration costs. Doc. #1, Ex. 1 at March 30, 2018 Final Award ¶¶152, 368.

Notably, pursuant to the Agreement, the arbitration took place in Stockholm, Sweden, in accordance with the Rules of the Institute of the Stockholm Chamber of Commerce.[1]

Now, Respondent TNG moves to dismiss FNP's Petition to confirm the Award in the Southern District of Texas for lack of personal jurisdiction. Doc. #10. Importantly, it is undisputed that FNP is an entity organized under Texas law and its principal place of business has been in Houston, Texas. Doc. #13, Ex. B TT 3, 5. It is also undisputed that TNG is an "oil-production company registered in the Tyumen Region of the Russian Federation" and does not hold any assets or have any employees in Texas. Doc. #10, Ex. A 11] 4, 9-10.

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[1] The Agreement provides that "when. . . discrepancies or disputes [between the parties] cannot be settled by friendly negotiations, such discrepancies or disputes should be ultimately settled by [] arbitration composed of three arbitrators. The arbitrators shall be appointed and act in accordance with the Rules of the Institute of Arbitration of the Chamber of Commerce in Stockholm. The place for arbitration should be Stockholm, Sweden. Any decision of the arbitrators shall be final." Doc. #14, Ex. I § 9.2.