The Best International Petroleum Industry Practices and A Reflection on Issued Awards Based on It

The global expansion of the oil and gas industry has led to the emergence of new terminologies within the oil and gas law literature, One of these terms is the “Best Practices in the Oil and Gas Industry”. Initially, this terminology had a profound impact on many international oil and gas contracts, consequently leading to a transformation in the structure of legal regulations and international treaties governing this industry globally. Its broad scope encompasses various facets, ranging from financial intricacies to technical dimensions, which has led to a significant focus in arbitration tribunals. The topic under consideration is, what concept this terminology carries concerning international oil and gas contracts, laws, and international treaties within the oil and gas sector, and how have arbitrators tackled this matter in international oil and gas arbitration tribunals.The article, adopting a descriptive-analytical approach and scrutinizing recent international contracts, laws, and treaties relevant to the oil and gas industry, has reached the conclusion that the “Best Practices in the Oil and Gas Industry” are the specialized customs of this industry. These practices evolve in conjunction with the advancements in knowledge and technology by industry actors and are universally adhered to, irrespective of geographical boundaries. Analyzing various oil and gas industry Arbitral awards issued grounded in the Best International Petroleum Industry Practices reveals that arbitrators assess various elements, including adherence to industry knowledge and technologies during making contract or performance, the claim of breaches concerning the Best International Petroleum Industry Practices during operations by the aggrieved party, and insights from petroleum industry experts to identify these best practices.