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William Lowery

William Lowery is of counsel in the firm’s international arbitration and litigation practices. His recent work includes securing an award in excess of $5 billion as compensation for expropriated oil and gas assets, representing clients in international arbitration proceedings arising from EPC contracts, and advising clients in gas price review negotiations and arbitrations.

William has represented clients in ad hoc proceedings and arbitrations governed by a variety of arbitration rules, including those of the International Chamber of Commerce (ICC), the International Centre for Dispute Resolution (ICDR), the London Court of International Arbitration (LCIA), the London Maritime Arbitrators Association (LMAA), and the United Nations Commission on International Trade Law (UNCITRAL). He also has represented clients in court litigation related to the recognition and enforcement of arbitration awards and foreign court judgments, as well as discovery under 28 U.S.C § 1782.

William has specialized experience in the energy and natural resources sectors, including disputes arising under: production sharing contracts, joint-operating agreements, and other license related agreements; oil and gas services contracts (both onshore and offshore); gas storage contracts; pipeline transportation agreements; long-term supply agreements for a variety of energy-related commodities (including oil, gas, LNG, LPG, coal, U3O8, and LEU); and various electricity-market related contracts and regulatory issues. William has also regularly represented and advised clients in prices reviews under gas supply agreements and LNG sale and purchase agreements.

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The International Energy Agency (IEA)’s latest monthly market report, published on November 13, 2015, revealed that the already “massive cushion” of oil stockpiles has inflated further to reach a record level of almost 3 billion barrels.  Following the announcement, oil prices reportedly dropped to a two-month low.

The IEA described this stockpile as “an unprecedented buffer against geopolitical shocks or unexpected supply disruptions.”  The glut in oil supplies is expected to maintain pressure on global oil prices, which many analysts predict will remain at the lower end of a $54-$64.0/bbl range during 2016.

In this post, we highlight two observable trends in the M&A activities of industry participants during 2015 as they navigate the current challenges facing the sector.


Continue Reading What’s the Deal with Low Oil Prices?

On Monday, June 16, 2014, Gazprom and Naftogaz each announced that they were commencing arbitration proceedings under the SCC Rules (seated in Stockholm, Sweden).

The arbitration arises under Contract No. KP dated January 19, 2009 (the “Contract”), a 10 year, long-term gas sales agreement between Gazprom and Naftogaz for volumes ranging from 40 to 52 billion cubic meters of gas per year. On the basis of the statements released by the parties, it appears that Gazprom will be alleging a debt claim. Naftogaz appears likely to invoke the price review provisions and seek a decrease in price. The value in dispute is in excess of US$4.5 billion.

To resolve the dispute, the tribunal will likely need to consider the price review provisions in the Contract. Pricing terms and price review provisions are confidential and rarely disclosed. However, Ukrainskaya Pravda — a Ukrainian news outlet — purported to publish the terms of the Contract when it was agreed. Assuming that the Contract published by Ukrainskaya Pravda contains the price review provisions that are relevant to the current arbitration between Naftogaz and Gazprom, the tribunal will be required to interpret some unusual terms.Continue Reading A Quick Look at the Gazprom/Naftogaz Contract Dispute

On Monday, June 16, 2014, Gazprom announced that it commenced arbitration proceedings against Naftogaz under the SCC Rules (seated in Stockholm, Sweden) alleging that Naftogaz has failed to pay US$4.5 billion for gas that Gazprom has already delivered to Naftogaz. Naftogaz also announced that it had commenced a claim under the SCC Rules, seeking the establishment of a fair price for gas and alleging that it has overpaid for the gas already supplied. Some reports suggest that another claim – valued at over US$18 billion – is just around the corner.

When disputes of this value arise, it is important to understand the issues underlying the dispute and how these disputes can be avoided or mitigated. We set out below some thoughts on the structure of pricing provisions in modern long-term gas supply agreements generally.

Complex pricing provisions are a common feature of long-term commodity contracts. In long-term gas sales agreements, a fixed price for the term of the agreement is usually unrealistic due to shifts in the competitiveness of the price over time. There is no single pricing term or indices that parties can universally reference. For this reason, parties typically agree on a bespoke price formula that includes a number of variables. The variables in the formula are agreed between the parties during the negotiation of the contract. Variables can represent substitute energy sources, hub prices, coefficients to counteract the impact of inflation or mitigate currency exchange risks or any other factor that the parties consider might impact the value of gas sold under the agreement.Continue Reading Pricing Complexity and Predictable Disputes – A primer on modern long-term gas supply contracts