International Arbitration in the Oil and Gas Industries

Abstract

The present chapter aims at discussing the most adequate international format to deal with controversies involving private entities, especially involving contractually guaranteed interests and rights. International arbitration is the accepted means of resolving controversies through a third party with judicial powers over the issue that is highly adapted to the transnational reality of current private international juridical relations, given the autonomy of the parties in areas such as specialty, speed and confidentiality sought. Thus, this chapter will initially focus on arbitration in Brazilian legal policy as a way of resolving controversies, in order to explain how international arbitration functions in Brazil and its format, which must, to some extent, be executed and recognized by Brazilian law, as well as analyzing how it is incorporated into the Brazilian legal system. Finally, we discuss the specific arbitration clauses contained in Brazilian oil and natural gas exploration contracts, their international implications and classification in Brazilian law. We also assess how arbitration is included in international commercial contracts that maintain a connection with Brazil for any reason, once again in accordance with private international law in force in the country.