Norton Rose Fulbright advises Israel Electric Corporation on US$2 billion award in ICC arbitration

Global Business May 2017

Norton Rose Fulbright advises Israel Electric Corporation on US$2 billion award in ICC arbitration

  • Swiss Supreme Court upholds ICC award requiring two Egyptian state entities to pay more than US$2 billion for termination of gas supply deal to Israel Electric Corporation
  • One of the world’s highest value ICC awards 

Global law firm Norton Rose Fulbright has successfully advised Israel Electric Corporation (IEC) in defending a landmark appeal by Egyptian General Petroleum Corporation (EGPC) and Egyptian National Gas Holding Company (EGAS).

The Swiss Supreme Court upheld an ICC award that requires state entities EGPC and EGAS to pay more than US$2 billion to IEC (and additional damages to East Mediterranean Gas) for breach of a contract to supply gas to downstream Israeli commercial users.

EGPC and EGAS failed to supply natural gas at the outset of the contractual period in the quantities and quality contracted for, and the dispute involved the consequent multi-billion dollar losses suffered by IEC as a result of having to secure alternative sources of supply or alternative fuels at short notice. The dispute resulted in a Geneva-seated ICC arbitration, which ran for over 4 years. The Tribunal members were Juan Fernández-Armesto (chair), John Marrin QC and Professor Osman Berat Gürzumar. In December 2015, the Tribunal awarded IEC over US $1.7 billion in damages, plus interest and costs. EGPC and EGAS then appealed to the Swiss Courts on a number of grounds, each of which has been rejected.

The Norton Rose Fulbright team, instructed by David Shawinsky of IEC, was led by partner Neil Q Miller, with assistance from senior associate Katie McDougall and associate Emma Nierinck in conjunction with Bär & Karrer AG who advised on the Swiss law issues. Counsel assisting were John McCaughran QC and Nicholas Sloboda of One Essex Court.

Neil Q Miller commented: “This is a testament to the hard work of the team. This complex and long-running dispute raised significant issues related to the security of supply, pipeline security, force majeure, contractual interpretation and quantification of damages.”

The Norton Rose Fulbright energy dispute resolution group in London advises international and national companies on some of the world’s most sensitive, high value and strategically important international arbitrations.

For further information please contact:

Louise Nelson, Senior PR Manager
Tel: +44 (0)20 7444 5086; Mob: +44 (0)7909 684 893

Notes for editors:

Norton Rose Fulbright

Norton Rose Fulbright is a global law firm. We provide the world’s preeminent corporations and financial institutions with a full business law service. We have more than 3500 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Norton Rose Fulbright will combine with Chadbourne & Parke, a leading international law firm, during the second quarter of 2017. Norton Rose Fulbright's expanded practice will have more than 1000 lawyers in the US and 4000 lawyers worldwide.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

Norton Rose Fulbright Verein, a Swiss verein, helps coordinate the activities of Norton Rose Fulbright members but does not itself provide legal services to clients. Norton Rose Fulbright has offices in more than 50 cities worldwide, including London, Houston, Toronto, Sydney and Johannesburg.

For more information, see