Samsung Engineering filed a $1 billion case against Oman at ICSID regarding a failed refinery improvement project contract. Samsung was originally selected as the preferred bidder in 2013 but negotiations broke down over the construction timeline. The case was brought to ICSID arbitration but the parties settled privately without intervention, and details of the settlement were not disclosed.
Samsung Engineering filed a $1 billion case against Oman at ICSID regarding a failed refinery improvement project contract. Samsung was originally selected as the preferred bidder in 2013 but negotiations broke down over the construction timeline. The case was brought to ICSID arbitration but the parties settled privately without intervention, and details of the settlement were not disclosed.
Samsung Engineering filed a $1 billion case against Oman at ICSID regarding a failed refinery improvement project contract. Samsung was originally selected as the preferred bidder in 2013 but negotiations broke down over the construction timeline. The case was brought to ICSID arbitration but the parties settled privately without intervention, and details of the settlement were not disclosed.
Samsung Engineering filed a $1 billion case against Oman at ICSID regarding a failed refinery improvement project contract. Samsung was originally selected as the preferred bidder in 2013 but negotiations broke down over the construction timeline. The case was brought to ICSID arbitration but the parties settled privately without intervention, and details of the settlement were not disclosed.
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Name: Farah Fadhilah
NIM: 1603101010199
The largest known claim to date by a Korean investor occurred, when Samsung Engineering
filed a $1 billion (USD) case at ICSID against Oman. The relationship between the two
parties in regards to the now settled issue of conflict began in 2013. Despite advanced
negotiations, the two sides were unable to put pen to paper on the deal as they were incapable
of agreeing on the project’s construction timeline. The construction unit of Samsung Group
said it asked the International Center for Settlement of Investment Disputes (ICSID) to
arbitrate a refinery improvement project in which the company was chosen as a preferred
bidder in 2013 by the state-run Oman Refineries and Petroleum Industries Company (ORPIC).
According to the ICSID, the U.S. law firm of Sheppard Mullin Richter & Hampton will
represent Samsung in the international court, which is based in Washington, D.C. On the
Oman's side, the country's Ministry of Justice and the Ministry of Oil and Gas will deal with
the matter. The case concerns development of a petroleum treatment facility improvement
venture that was charged by the state-possessed Oman Oil Refineries and Petroleum
Industries Company. Samsung Engineering was at first announced the favored bidder in the
task, yet brought the case dependent on conditions that lead to the last offer being eventually
granted to another consortium. It has not been unveiled whether Korean advice are involved.
Cases emerging out of the supposed unfair treatment by the State towards the inquirer
regarding the offering procedure to embrace enhancements to the Sohar processing plant in
northern Oman kept running by the state-claimed Oman Refineries and Petroleum Industries
Company (ORPIC) in 2013. As the talks dragged on, ORPIC issued a “bond call” on
Samsung Engineering’s tender guarantee, resulting in the latter’s expressing disagreement
over the decision through its 2015 ISDS filing.
Samsung Engineering had asked to be compensated not only for its tender guarantee, but also
to be reimbursed for its project planning and bidding expenses. Details of the settlement were
not made public. South Korea’s Samsung Engineering Co. has reportedly settled its dispute
with the Omani government over the failed contract it had preliminarily won from Oman’s
state-run Oil Refineries and Petroleum Industries Co. (ORPIC).
Note: Subject of Dispute is Refinery improvement project. It is a dispute in Economic Sector
of Construction. The Instrument(s) that Invoked in this case is BIT Korea, Republic of South
Korea - Oman 2003. The Applicable Rules for this case is ICSID Convention - Arbitration
Rules.
Analysis:
This case is categorized as international investment case because the business locations of the
parties are from 2 different countries. At first, it was brought to ICSID arbitration. Samsung
Engineering’s ISDS case against the Omani government declared the proceedings closed
after the two sides came to an agreement without an intervention from the international
arbitration institution. That’s why this case is hard to find the file because in the end both of
the parties settled the case without intervention from ICSID, the details of the settlement were
not made in public. We don’t know what the reason they want to settle it by themselves but
as we know that if we settle our problem in arbitration it must be cost a lot of money, this
case was handled for more than 8 years in ICSID, can you imagine how much the cost and
the time wasted? In my opinion, this is one of the reason the case ended settled by the parties
without any intervention even though the ICSID provides companies that have seen their
investments in foreign countries harmed or damaged due to political changes a means of
seeking restitution via a third party arbitrator. The case of a failed contact between Samsung and Omani settled with preliminarily won from Oman’s state-run Oil Refineries and
