Enterprise | 8 July 2024
World Bank arbitration tribunal dismisses Emirati oil firm’s EGP 3 bn case against Egyptian government
Egypt did not breach its investment treaty in dispute with UAE oil company in EGP 3 bn claim: The World Bank’s International Center for the Settlement of Investment Disputes (ICSID) last week dismissed claims brought against the Egyptian government by UAE-based CTIP Oil & Gas Investment Limited, according to a statement from the State Lawsuits Authority (SLA). A second near-identical treaty claim on the same day brought forward by two CTIP investors with Canadian citizenship was also dismissed on the same day by a Paris-seated United Nations Commission on International Trade Law tribunal.
Good news for the public purse: The Emirati firm was looking to receive an EGP 3 bn — equivalent to USD 62.4 mn at current exchange rates– settlement from the government to make up for alleged damages filed by the company, according to the SLA. However, the Global Arbitration Review puts the figure much higher, reporting that the claimants were pushing for claims amounting to USD 190 mn.
The claims: The claimants in the two separate suits alleged that Egypt violated its obligations under bilateral investment treaties (BITs) between Egypt and the UAE and Canada, after a contract between CTIP subsidiary National Gas and the state-owned Egyptian General Petroleum Corporation (EGPC) was terminated by the EGPC. The 25-year contract inked in 1999 to build and operate a gas distribution network in Sharkia was terminated twenty years in 2019, leading to accusations Egypt had broken its BITs with the UAE and Canada, among other allegations, according to the Global Arbitration Review. The case has been before the international arbitration tribunals since 2019.
What they said: “This confirms the Egyptian state’s respect for all its international treaties and agreements, which encourages investors to invest in Egypt,” said States Lawsuit Authority Vice President Sameh Sayed Mahmoud.
Legal teams: The Egyptian state was represented by government lawyers and law firm Gaillard Banifatemi Shelbaya Disputes. CTIP and the two investors were represented by Freshfields Bruckhaus Deringer and Shahid Law.
