Trans-Global Petroleum’s (TGP) claims are based on provisions of the Bilateral Investment Treaty (BIT) between the US and Jordan. TGP’s BIT claims arise from a 1997 concession agreement, concluded by TGP and Jordan, where TGP carried out oil exploration activities in its Dead Sea license area for 10 years, investing over $29 million.
TGP reportedly notified the Jordanian government in August 2005 that it made important oil discoveries and then sought a financial partner for fast-tracking the development of its new oil discoveries.
The Jordanian authorities through its Natural Resources Administration (NRA) have reportedly sought to terminate TGP’s contract rights. The NRA is said to have then intervened with its partnering effort and effectively forced TGP to surrender a controlling stake in its concession.
For these reasons, TGP filed a request for arbitration with the World Bank’s International Centre for the Settlement of Investment Disputes, alleging that Jordan’s NRA violated the US-Jordanian BIT through a pattern of unfair and discriminatory treatment.
