Publications

Garrigues

ELIGE TU PAÍS / ESCOLHA O SEU PAÍS / CHOOSE YOUR COUNTRY / WYBIERZ SWÓJ KRAJ / 选择您的国家

International Arbitration Newsletter - March 2021 | Regional Overview: Middle East and Africa

The most relevant updates from Middle East and Africa from the global International Arbitration and ADR practice group at Garrigues.

EGYPT

Naturgy, Eni and Egypt settle their international disputes

Naturgy has resolved a dispute over a natural gas liquefaction plant at the port of Damietta (Egypt) that has been ongoing since 2012. Naturgy has reached an agreement with Italy’s Eni and the Egyptian Government to amicably resolve several complex disputes which involved Unión Fenosa Gas (UFG). By this global agreement, Egypt drops its intention to annul the ICSID award in favour of UFG for US$ 2 billion, and UFG abandons the enforcement of that award in the US, UK, Luxembourg, the British Virgin Islands and the Netherlands.   

UFG has obtained US$ 600M in cash and UFG’s assets outside Egypt. Moreover, by this agreement, Naturgy is freed of its contract of natural gas supply for combine cycles in Spain and retains the supply of LNG in Oman.

Finally, the agreement also sets aside two ICC arbitration and two claims before the Cairo Regional Centre for International Commercial Arbitration (CRCICA).

LEBANON

Annulment of award against Lebanese broadcaster dismissed

The Paris Court of Appeal has rejected the challenge of the award rendered by an ICC tribunal which ordered Rotana Group (Rotana), owned by Saudi Arabian Prince Al-Waleed, to pay US$ 22 million to the Lebanese Broadcasting Corporation International (LBCI) over the termination of a cooperation and services agreement signed by both parties.

The Middle Eastern media and entertainment group had an agreement with LBCI over the use of brands, equipment, joint production and financial flows, which derived from the acquisition by Prince Al-Waleed of a majority stake in Lebanese Media Holding (LMH), a holding company created by LBCI in order to manage LBC-branded satellite channels and PAC, a production company.

The sole arbitrator found that Rotana had terminated the agreement unlawfully and thus ordered Rotana to pay LBCI the damages caused.

The Paris Court of Appeal has now dismissed Rotana’s attempt to set aside the award confirming the applicability of the arbitration clause, the non-existence of a breach of the arbitrator’s duty of independence and impartiality, and the award's compliance with public policy.

The decision of the Paris Court of Appeal has been appealed by Rotana to the French Court of Cassation.

 

News search engine