The kingdom of Saudi Arabia and Aramco arbitrate the Onassis agreement

Abstract

The Arabian American Oil Company (Aramco) found the world’s largest oil fields in the 1930s under a comprehensive concession agreement covering most of Saudi Arabia. In 1954 the Kingdom of Saudi Arabia challenged Aramco’s exclusive right under that concession agreement to export its oil production by awarding a contract to Aristotle Socrates Onassis for a right of priority to transport the concession’s oil production by tanker for a period of 30 years. The result was one of the most significant arbitrations of the 20th century, the Onassis case. This article describes that case from an insider’s perspective.