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Texas Overseas Petroleum Co. v. Libyan Arab Republic
Preliminary Award by Arbitrator Rene-Jean Dupuy
Privately Published November 27, 1975
- Written by Whitney Waldenberg, JD
Facts
In the 1950s and 1960s, the Libyan government (defendant) granted Texas Overseas Petroleum Co. (Texaco) (plaintiff) deeds of oil concession that permitted Texaco to own interests and operate in Libya. The concessions contained an arbitration clause. In 1973 and 1974, Libya issued decrees nationalizing all of the interests and rights that Texaco held in Libya. Texaco sought arbitration, but Libya refused to participate and challenged the arbitrator’s jurisdiction based on the measures of nationalization, claiming that it voided the deeds of concession and, therefore, also voided the arbitration clauses.
Rule of Law
Issue
Holding and Reasoning (Dupuy, J.)
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