TAURUS PETROLEUM LTD V STATE OIL MARKETING COMPANY OF THE MINISTRY OF OIL, REPUBLIC OF IRAQ

[2017] UKSC 64, Supreme Court, Lord Neuberger, Lord Mance, Lord Clarke, Lord Sumption and Lord Hodge 25 October 2017

Conflict of laws - Enforcement of English award - Third party debt order - Situs of debt due under letter of credit - Whether court had jurisdiction to make order - Whether court entitled to make receivership order in respect of debt - Arbitration Act 1996, section 66

A dispute arose under a series of contracts between the State Oil Marketing Company of Iraq (SOMO) and Taurus for the sale of crude oil. The dispute was referred to arbitration with its seat in Baghdad, and Taurus secured an award of US$8,716,477 against SOMO. SOMO declined to honour the award. Taurus then became aware that Shell had purchased two parcels of crude oil from SOMO, the price payable to the Central Bank of Iraq (CBI) in New York under letters of credit issued by the London branch of Crédit Agricole SA. Taurus applied without notice for leave to enforce the award as a judgment, for an interim third party debt order, and for the appointment of a receiver in respect of the funds receivable under the letters of credit.