International Arbitrations between States and Foreign Private Parties: the Libyan Nationalization Cases

Abstract

On November 29 and 30, 1971, Iran occupied three islands, which were nominally under British protection, in the Persian Gulf. As a result of Britain’s failure to prevent the occupation, the Government of the Libyan Arab Republic, on December 7, 1971, announced the nationalization of all of the interests and properties in Libya of BP Exploration Company (Libya) Limited (BP), a subsidiary of British Petroleum Company Limited. On September 1, 1973, on the fourth anniversary of the military takeover of Libya led by Colonel Muammar el-Qaddafi, the Government of Libya announced the nationalization of 51 percent of the interests and properties in Libya of nine international oil companies. Approximately 5½ months later, on February 11, 1974, on the eve of the opening of the Washington conference of major oil-importing nations, the Government of Libya announced the nationalization of the remaining 49 percent of the interests and properties in Libya of three of those nine companies: Texaco Overseas Petroleum Company (TOPCO), a subsidiary of Texaco Inc.; California Asiatic Oil Company (CALASIATIC), a subsidiary of Standard Oil Company of California; and the Libyan American Oil Company (LIAMCO), a subsidiary of Atlantic Richfield Company.