The Arbitration Tribunal in the Matter of an Arbitration between the Government of the State of Kuwait and the American Independent Oil Company (Aminoil) - Final Award

Original printed wraps 22 x 29cm. (4), 162pp printed to the rectos only. Covers very good, creased to corners. Interiors near fine. Very rare with Worldcat and Jisc recording 3 locations only (Energy Institute, Houston University, Pepperdine University). Worldcat also records a book containing some of the transcripts. This is about the nationalisation of Aminoil's operations in Kuwait, and the events leading up to it. In 1948 the Ruler of Kuwait with British assent granted the American Independent Oil Company (Aminoil) a 60-year concession to explore and exploit oil and natural gas in the Neutral Zone. Kuwait would receive a fixed royalty, and a stabilisation clause would prevent it from unilaterally annulling or altering its terms. Kuwait became independent in 1961, and the parties agreed to replace the fixed royalty with a 50/50 profit share. In 1973 they arrived at a Draft Agreement granting Kuwait a greater share. Kuwait subsequently demanded a further increase in line with OPEC's Abu Dhabi formula. In 1977, when Aminoil refused, Kuwait nationalised the Concession under Decree Law No124. This proceeded via the Kuwait Oil Company and the newly created Kuwait National Oil Company, and the Oil Minister established committees to make an inventory and assess fair compensation. In response, Aminoil initiated this Arbitration in 1978. The Arbitration Agreement was signed on 23 June 1979 by Kuwaiti Oil Minister Sheikh Ali Al Khalifa al Sabah and Aminoil President George E. Trimble. On 1 Nov, the President of the International Court of Justice appointed Paul Reuter, Law Professor at Paris University, as the Tribunal's President. The Kuwait Government nominated Professor Hamed Sultan to the Tribunal, and Aminoil Sir Gerald Fitzmaurice QC. The Tribunal held its first meeting in Paris on 19 Dec to organise proceedings, and agreed its rules in Geneva in July 1980. The Parties deposited their Memorials on 2 June 1980, Counter-Memorials on 5 Jan 1981, and Replies on 27 April. The Tribunal met with both Parties on 26 June, and determined that hearings would begin in Paris on 16 Nov. Oral hearings on behalf of both Parties went ahead on 16-17 Nov, and witnesses were heard during 7-15 Dec. The Kuwait Government claimed from Aminoil $125m in royalties and taxes, $19m in liabilities to third parties, and $5.9bn from operations and installations (the vast majority of which for damages in relation to "lost oil"), plus interest. Aminoil claimed from Kuwait $2.6bn in lost profits (failing that, $185m for physical facilities), $30m other assets and liabilities, $423m overpayments it had made to the Kuwait Govt, plus interest. The Tribunal found that the 1973 Draft Agreement and Abu Dhabi formula were valid, and that nationalisation was lawful and did not violate the stabilisation clause. In Paris on 24 March 1982, it awarded compensation to Aminoil at $180m, payable by 1 July 1982. This Final Award document explains the whole process, including introductory information, the proceedings, facts, applicable law, contractual obligations, validity of Decree Law No124, Kuwait's other counter-claims, indemnification, the award, Fitzmaurice's separate opinion on it, and identifies the members of each team.