1948 AMINOIL, Delaware corporation) was granted by Kuwait an oil concession of 60 years of duration
Art 17, 1948. The Shaikh shall not by general or especial legislation or by administrative measures or by any other act whatever annul this Agreement except as provided in Art 11. No alteration shall be made in terms of this agreement by either the Shaikh or the company [except by agreement between them]
1977 Kuwait terminated the concession by Decree Law
AMINOIL contested the legality of the Decree.
1979 AMINOIL and Kuwait signed an arbitration agreement to settle the dispute,
Art III (2) law governing the substantive issues shall be determined by the Tribunal, having regard of the quality of parties, trans-national character of their relations, principles of law and practice prevailing in the modern world [applicable law]
The tribunal was going to seat in Paris IV,3,ii, and was subject to mandatory provisions of the law of the place IV,1. [lex arbitri]
[This case does not accept the theory that a State may surrender its power to nationalize by stabilisation clause. This award is more balanced that the Texaco. The stabilization clause may, however, be important in the compensation]