Lex Petrolea and the Protection of Upstream Foreign Direct Investments
Posted: 2 Dec 2014
Date Written: December 1, 2014
This article explains some of the common protections offered to foreign investments in upstream hydrocarbon projects under lex petrolea. Lex petrolea is the law, which is utilised by petroleum tribunals as an integral part of the transnational law applicable to hydrocarbon disputes. The focus here is on the upstream industry and in particular E&P-related Hydrocarbon Agreements and the scope of our discussion is limited to the substantive protections offered to foreign investors in this sector. For this purpose after introducing lex petrolea as a distinct body of law, we look into the most common investment and investor protection clauses included in the Hydrocarbon Agreements and identify instances of apparent deviation of petroleum tribunals from the general practice of investment tribunals in interpreting, defining and applying the standards of investment protection.
Keywords: lex petrolea, Investment Treaty Arbitration, Transnational Law, International Investment Law, Oil and Gas Law
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