Exclusion agreements

The right to appeal against an award for error of law, set out in s69 of the Arbitration Act 1996, can be ousted by agreement. The question before Gloster J in Shell Egypt West Manzala GmbH & Anorv Dana Gas Egypt Ltd [2009] EWHC 2097 (Comm) is, what wording suffices for this purpose? In Shell Egypt, Gloster J held that the words ‘final, conclusive and binding’ did not have that effect.

Shell Egypt: the facts

By a Cooperation Agreement (the FIA) dated 17 March 2006 between Shell and Centurion (Dana’s predecessor in title) Shell was to acquire a 50% interest in two concessions for the crude oil and gas exploration in the Nile Delta. The FIA contained an arbitration clause in the following terms: