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.
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