The Middle Eastern and African Arbitration Review 2018: Energy Arbitration in Africa

• Steven Finizio
• 5.22.2018

In this chapter published by Global Arbitration Review, Steven Finizio provides an overview of the disputes involving large-scale energy projects in Africa that have typically been resolved through international commercial and investor-state arbitration. The article also provides an overview of some of the recent trends in commercial and treaty cases.

Excerpt: The energy sector is a critical element in Africa’s economic development. It includes traditional resources such as oil, gas and coal as well as a growing emphasis on renewable sources of energy. Historically and today, the African energy sector has been dominated by the petroleum industry. Africa has a number of the world’s top oil-producing countries, with an estimated 57 percent of Africa’s export earnings derived from hydrocarbon revenues. Africa accounts for over 11 percent of global oil production over the past decade and, according to 2016 figures, holds 7.5 percent of the world’s proven oil reserves and 7.6 percent of the world’s proven gas reserves. In addition, Africa has accounted for one-fifth of the growth in total energy demand in the last five years and this demand is expected to increase to 20 percent of the global energy consumption by 2035–2040. As discussed below, the energy sector has generated a significant number of disputes that have been resolved through international arbitration, and this number appears to be increasing.