Types of Political Risk Leading to Investment Arbitrations in the Oil & Gas Sector

Journal of World Energy Law & Business, Vol 8, 2015, Forthcoming.

King's College London Law School Research Paper No. 2015-36

32 Pages Posted: 13 Jun 2015 Last revised: 27 Aug 2015

See all articles by Cedric G. Dupont

Cedric G. Dupont

Graduate Institute of International and Development Studies (IHEID)

Thomas Schultz

King's College London; University of Geneva; Graduate Institute of International and Development Studies (IHEID) - Geneva Center for International Dispute Settlement (CIDS); Graduate Institute of International and Development Studies

Melanie Wahl

Graduate Institute of International and Development Studies (IHEID)

Merih Angin

Graduate Institute of International and Development Studies (IHEID)

Date Written: June 11, 2015

Abstract

It is often believed that investment arbitrations are filed because some form of political risk materialized, harming the investor’s interests. This is the hypothesis that the authors examine in this article, focusing on the oil & gas sector. They analyze which types of political risk, present in the host state, eventually lead oil & gas investors to file investment arbitration claims against that state. They find statistical evidence supporting the idea that bad governance and economic nationalism are indeed conducive to arbitration claims in the oil & gas sector. However, it appears that economic hardship does not have the same triggering effect.

Keywords: foreign investment, arbitration, political risk, bad governance, economic hardship, economic nationalism

JEL Classification: E22, E62, G31, K33

Suggested Citation

Dupont, Cedric G. and Schultz, Thomas and Wahl, Melanie and Angin, Merih, Types of Political Risk Leading to Investment Arbitrations in the Oil & Gas Sector (June 11, 2015). Journal of World Energy Law & Business, Vol 8, 2015, Forthcoming.; King's College London Law School Research Paper No. 2015-36. Available at SSRN: https://ssrn.com/abstract=2617209

Cedric G. Dupont

Graduate Institute of International and Development Studies (IHEID) ( email )

Thomas Schultz (Contact Author)

King's College London ( email )

Somerset House East Wing
Strand
London, WC2R 2LS
United Kingdom

University of Geneva ( email )

102 Bd Carl-Vogt
Genève, CH - 1205
Switzerland

Graduate Institute of International and Development Studies (IHEID) - Geneva Center for International Dispute Settlement (CIDS) ( email )

Villa Moynier
Rue de Lausanne 120b
Geneva, 12011
Switzerland

Graduate Institute of International and Development Studies ( email )

Geneva
Switzerland

Melanie Wahl

Graduate Institute of International and Development Studies (IHEID) ( email )

PO Box 136
Geneva, CH-1211
Switzerland

Merih Angin

Graduate Institute of International and Development Studies (IHEID) ( email )

PO Box 136
Geneva, CH-1211
Switzerland

Register to save articles to
your library

Register

Paper statistics

Downloads
255
Abstract Views
1,380
rank
118,203
PlumX Metrics