The Case Study Of Mobil Corporation And Others V. Venezuelan Investment Arbitration

The investment arbitration case Venezuela Holdings B.V.and others v.Bolivarian Republic of Venezuela originated from the Venezuelan government's levy on the investment of Mobil in its territory.Since the compensation amount was not agreed by the parties,Mobil filed an investment arbitration in ICSID.Because of the double recovery risk after the award,the issue of treaty purchase in the arbitral proceedings,the relationship between domestic law and state responsibility is not favorable to Venezuela,post-award remedies procedure was initiated by Venezuela.The first strategy of Venezuela is to try to solve the double recovery problem in the revision procedure,and then the annulment procedure was initiated,and end up with the partial annulment decision,eventually Venezuela avoided losses of more than one billion US dollars.On October 24,2018,Mobil resubmitted the arbitration in accordance with the ICSID arbitration rules.At the time of this writing,the resubmission procedure has not yet been decided.The case is a representative cases of the use post-award remedies of ICSID in the recent years.According to the Procedural Guidelines listed on the ICSID official website,the post-award remedies includes the Rectification(Article 49 of the ICSID Convention),the Interpretation(Article 50 of ICSID Convention;ICSID Arbitration Rules 50,51,53 and 54),the Revision(Article 51 of the ICSID Convention,Arbitration Rules 50,51,53 and 54),the Annulment(Article 52 of the ICSID Convention,Arbitration Rules 50 and 52-55),and the rules about the procedure in the ICSID Convention and ICSID Arbitration Rules,such as stay of enforcement of award,etc.Since the rules of the post-award remedies procedure are too simple and require further explanation to be applicable to the specific situation,this paper analyzes the criteria of rules through typical cases.This paper take the relevant basic facts as the first step to analysis the application of the post-award remedies by both parties and the tribunal,including the applicable standards of procedure of the revision,the annulment,and the stay of enforcement pending Annulment.The full text is divided into three parts.The first part is the first chapter of this paper.This part mainly introduces the background of the case and the relevant facts about the arbitral procedure,analyzes the basic facts of the post-award remedies and motives,including the impact of treatypurchase on jurisdiction,the relationship between domestic law and the international responsibility of the host country,and double recovery issues,summarizes the main disputed issues of the post-award remedies of this case.The second part is the second chapter to the fourth chapter of this paper.This part analyzes the strategies of the parties,summarizes the arbitral logic of the tribunal and ad hoc Committee on related issues,and explored the criteria about three issues concerning the revision of procedures,the annulment of procedures,and the stay of enforcement pending Annulment.The third part is the fifth chapter of this paper.This part summarizes the enlightenment brought by this case according to the previous analysis.including the enlightenment of the investment arbitration strategy,the improvement suggestions of the stay of enforcement pending Annulment,the formulation of international investment decisions,and put forward relevant suggestions for China and Chinese investors on the risk of treaty purchases and parallel litigation in combination with China's dual status of attracting foreign capital and capital exporting countries.