Compass Lexecon Experts Assist ICSID Tribunal in Granting Over US$ 236 Million in Damages to MOL

Compass Lexecon experts Professor Pablo T. Spiller and Miguel A. Nakhle were retained by MOL Hungarian Oil and Gas Company PLC (Claimant) as damages experts in their ICSID international arbitration proceedings against the Republic of Croatia. The claimant filed this case in 2013, alleging that Croatia was liable under the Energy Charter Treaty (ECT) for several measures affecting MOL’s investment in Croatian oil and gas company, INA. In an Award rendered on July 5, 2022, the Tribunal found Croatia liable for several of the ECT breaches claimed by MOL.

Professor Spiller and Mr. Nakhle quantified the damages MOL suffered through its shareholding in INA as a consequence of each breach claimed. They quantified INA’s foregone cash flows between 2011 and 2014 due to Croatia’s failing to take over its natural gas trading business, breaching its contractual obligations on pricing, and forcing its subsidiary Prirodni Plin to sell stored natural gas. Relying on Prof. Spiller and Mr. Nakhle’s assessment of nominal losses, the Tribunal added interest and awarded total damages to MOL of over US$ 236 million.

Professor Spiller and Mr. Nakhle were supported by a team that included Helena Croce Nunes, Carla Chavich, Gustavo de Marco, Charles Rice, and Jack Ghaleb. Compass Lexecon worked with a Dechert LLP team that inlcluded Arif Ali, Alex de Gramont, Erica Franzetti, Daniel Dózsa, David Attanasio, and Michael Losco.