ISLAMABAD: Pakistan has enlisted three renowned international law firms — White & Case, Three Crowns, and Willkie Farr & Gallagher — along with a leading Australia-based oil and gas legal expert, to defend its position in the Court of Arbitration in Paris. This legal move responds to a case filed by Iran over Pakistan’s failure to complete its portion of the Iran-Pakistan (IP) gas pipeline and initiate intake of 750mmcfd gas.
The legal team was formally designated to the arbitration tribunal on October 18, 2024, according to senior officials in the Law Division and Attorney General’s Office. Following consultations, Pakistan will appoint one arbitrator, with Iran choosing another, and a jointly nominated third arbitrator finalizing the tribunal.
The arbitration follows a final notice from Iran in August 2024, issued after Pakistan missed a February-March 2024 construction deadline and a subsequent 180-day extension that ended in September. Despite Pakistan’s efforts to secure a U.S. waiver, the project remains stymied by U.S. sanctions.
The original Gas Sales Purchase Agreement (GSPA), signed in 2009 under French law, mandates a $1 million daily penalty to Iran from January 1, 2015, due to non-completion. The Court of Arbitration, which does not recognize U.S. sanctions, is anticipated to reach a decision within one year.
Story by Khalid Mustafa
