An ICC Tribunal, chaired by Bernard Hanotiau, has dismissed a US$13 billion price reduction claim brought by Botaş against the National Iranian Gas Company (NIGC).
Botaş is a Turkish state-owned energy company and NIGC its Iranian counterpart. The dispute arises under a 25-year gas supply contract between the two companies under which Turkey imports up to 10 billion cubic metres of gas per year from Iran.
Botaş brought two claims in the ICC arbitration. The first claim alleged that NIGC failed properly to perform the contract, and that a US$13 billion price reduction was due. In its recent award dated 10 November 2014, the Tribunal wholly rejected that first claim. A second claim, for US$25 billion, seeks a large downwards revision in the price of Iranian gas pursuant to a price revision clause in the contract. That claim is still to be ruled upon. The US$38 billion overall claim makes this one of the largest arbitrations presently being heard globally.
NIGC is represented by Paul Key QC and Siddharth Dhar and a team from Python & Peter in Geneva led by Pierre-Yves Gunter. Botaş is represented by a team from Lalive, Geneva.
Further details can be found on the Global Arbitration Review website.