Summary

Investors in energy projects should not rely on international arbitration to insulate themselves from unpredictable judicial systems. Recent rulings by local courts in Indonesia, Pakistan and India demonstrate the limits of arbitration, particularly in matters involving economic upheaval, political instability and allegations of corruption. In such circumstances, local project participants and government agencies have employed local court orders to delay or block international arbitration proceedings in favour of judicial review of claims that the project contracts were invalid ...