The kingdom of Saudi Arabia and Aramco arbitrate the Onassis agreement

Stephen M. Schwebel

52 citations0/0 files storedThe Journal of World Energy Law & Business

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International Arbitration and Investment Law Conflict of Laws and Jurisdiction Dispute Resolution and Class Actions

Abstract

The Arabian American Oil Company (Aramco) found the world’s largest oil fields in the 1930s under a comprehensive concession agreement covering most of Saudi Arabia. In 1954 the Kingdom of Saudi Arabia challenged Aramco’s exclusive right under that concession agreement to export its oil production by awarding a contract to Aristotle Socrates Onassis for a right of priority to transport the concession’s oil production by tanker for a period of 30 years. The result was one of the most significant arbitrations of the 20th century, the Onassis case. This article describes that case from an insider’s perspective.

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