Choosing the Right Seat: What Energy Clients Need to Know About International Arbitration

Iain Clark attended London International Disputes Week 2025, follow his thought leadership series where he provides insight to key sessions throughout the week, key takeaways and what they mean for dispute resolution practitioners in Scotland. 

Energy disputes are rarely local. Whether upstream, midstream, or renewable, today’s energy projects span continents, currencies, and jurisdictions. At my second session of the LIDW25 Arbitration Day, asked a pertinent question: What makes an “ideal” seat of arbitration?

From the Gilson Gray LLP Energy and International Arbitration teams, the answer is clear: the ideal seat is the one that supports the deal – not just the dispute.

Dipen Sabharwal opened with a reality check: arbitration follows investment. As capital flows into Asia and the Middle East, we’re seeing greater use of regional arbitral institutions like SIAC. In Africa, however, where energy investment is booming, no dominant seat or institution has yet emerged so parties often default to London (LCIA) or Paris (ICC). For energy clients, perhaps more used to litigation in the UK Courts, this means balancing familiarity with enforcement viability in the host state.

Nadia Nicolaou raised the role of technology, particularly in emerging seats. The UAE’s new federal law on virtual hearings reflects a shift toward digital-first dispute resolution. For energy projects in remote or politically sensitive areas, this offers real advantages. AI tools like transcription and case analytics are helping drive down time and cost, two critical concerns in energy arbitration.

Stuart Dutson reminded us of London’s staying power, despite his reservations as an Australian – referring whimsically to ABE (Anyone But the English). He noted that, following Brexit, London remains a cornerstone for dispute resolution, thanks to its experienced judiciary, English as a language, English law’s commercial predictability, and institutional strength.

Catherine Schroeder-Paillard commented further on the Queen Mary University Survey, discussing some of the complexities and issues which may need to be considered for future surveys.

The moderator, EMILIA ONYEMA also commented that, although English may be the law of business, and dominant in arbitrations, the main language of the nations in Africa is French, and they are dominated by Civilian legal systems, albeit the infrastructure can vary widely.

What does this mean for your project?

Whether you’re negotiating a JOA, PSA, or EPC contract, the choice of arbitral seat should not be an afterthought. It’s a strategic decision that affects enforcement, cost, and risk allocation.

At Gilson Gray LLP, we help energy clients structure contracts and resolve disputes with an eye on the full lifecycle of the deal. Let’s ensure your arbitration strategy matches the complexity  – and opportunity – of the energy markets you’re operating in.

To discuss any of the points raised further, please contact him below or a member of our Litigation team here.

The information and opinions contained in this blog are for information only.  They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice.  Before acting on any information contained in this blog, please seek solicitor’s advice from Gilson Gray.