Girgis_Abd El-Shahid

Shahid Law Triumphs in 2-Year CRCICA Oil & Gas Arbitration Dispute 

In a remarkable victory for Shahid Law‘s dispute resolution team, a longstanding two-year arbitration case at the Cairo Regional Centre for International Commercial Arbitration (CRCICA) has concluded in favor of their client, a prominent international upstream Oil and Gas corporation specializing in well exploration and development across Africa and the Middle East. The dispute unfolded as a result of a blowout incident during an oil well drilling operation in Egypt’s South Sinai region, specifically in the Assal area. 

The opposing party, the Contractor, brought the arbitration case against Shahid’s client, seeking substantial compensation for damages incurred during the blowout. These damages included the destruction of their drilling rig and equipment, lost profits, moral damages, and unpaid invoices. 

Throughout the primary arbitration proceedings, the Contractor asserted claims totaling approximately USD 15 million, contending that our client’s actions were responsible for the fire and the resulting damages. Shahid Law’s legal team effectively dismantled these claims, arguing that they lacked merit. The tribunal ultimately found in favor of Shahid’s client, awarding the Contractor only the unpaid invoices, which represented a mere 3% of their original claim. 

In addition to their success in reducing the claim’s value, Shahid’s legal team played a crucial role in establishing significant technical principles within the industry. These principles, enshrined in the tribunal’s ruling, further solidified the outcome in their client’s favor. 

Simultaneously, Shahid Law navigated a parallel arbitration process, successfully raising concerns about the Contractor’s unclear identity. Although their award arrived slightly late, it had no res judicata effect and therefore couldn’t be considered by the tribunal addressing the case’s merits. 
This win was secured by Managing Partner Girgis Abd El-Shahid (pictured), Counsel Inji Fathalla and Associate Georges Ghali. During different phases of both arbitrations, and in recognition of their dedicated performance, Shahid’s interns Logyne ElGhor and Gabriel Abou Adal, were given the opportunity to participate in live cases as part of Shahid’s internship program.