The Energy Charter Treaty (ECT) is a multilateral energy-focused investment treaty signed in 1994 and entered into force in 1998.

One of its central objectives is to protect the investments of investors of one contracting party (CP) made in the energy sector of another CP.

The negotiating parties aimed to achieve this objective by incorporating fundamental protection standards in the form of obligations placed on CPs in the ECT. Should a qualifying investor consider a CP to have breached one or more of its obligations, the investor may be entitled to commence international arbitration proceedings against that CP pursuant to article 26 of the ECT.

Since 2012, the Energy Charter Secretariat has been actively trying to involve states from the Cooperation Council for the Arab States of the Gulf (the GCC) in the Energy Charter process, including discussions on accession to the ECT.

This Practice Note will:

• introduce the ECT and its pertinent investment protection provisions;

• demonstrate how GCC nationals and companies may already qualify as investors making investments under the ECT; and

• consider the key steps in commencing international arbitration under article 26 of the ECT.