Summary

Boru Hatlari Ile Petrol Taşima AŞ and others (also known as Botaş Petroleum Pipeline Corporation) (Appellants) v Tepe Insaat Sanayii AS (Respondent) (Jersey) - From the Court of Appeal of Jersey

1. The first appellant Boru Hatlari Ile Petrol Taşima Aş (Botaş") and the respondent Tepe Inşaat Sanayii Aş ("Tepe"), are Turkish companies. A group of Main Export Pipeline ("MEP") participants led by BP engaged Botaş as main contractor under a Turnkey Contract for the construction and operation of the Baku-Tbilisi-Ceyhan ("BTC") pipeline. Botaş in turn engaged Tepe and a joint venture between Tepe and the party cited Nacap BV ("TPN JV") as sub-contractors for parts of the work under a Stations Contract and a Lot A Contract. Nacap BV and TPN JV have assigned their rights under these contracts to Tepe, and need no further mention. Tepe has obtained arbitration awards, which Botaş has failed successfully to challenge in the French courts and failed to pay, under which Botaş is now liable for over USD 100m (including interest).
2. Tepe seeks to enforce the outstanding awards against shares ("the Shares") held by Botaş in two Jersey subsidiary companies, Turkish Petroleum International Limited Company ("TPIC"), the second appellant, and Botaş International Limited ("BIL"), the third appellant. The Jersey courts have granted an interim arrêt entre mains in respect of the Shares. Botaş challenges this order on the basis that the Shares were and are immune from any process of enforcement under the State Immunity Act 1978 as extended to Jersey, with minor modifications, by the State Immunity (Jersey) Order, 1985. The challenge failed both in the Royal Court and in the Court of Appeal, albeit by somewhat differing reasoning. ...