Analysis On Identification And Compensation Issues Of Indirect Expropriation In International Oil Investment

As one of the most important parts of the Chinese energy investment strategy,overseas investment in oil make significance in Chinese energy safety and oil industrydevelopment. And indirect expropriation is also a risk for the Chinese overseasinvestment in oil.The first part introduces some relevant concepts and the relationship betweenindirect expropriation and international oil investment.This article analyzes legality ofthe expropriation and the limiting condition of its application. Through summarizingthe views of the jurists and the international law papers, it is found that indirectexpropriation does not have a widely accepted concept, with more views describingthe characteristics of the indirect expropriation.The second and third part analyzes the two hot issues on the indirectexpropriation, identification issue and compensation issue. Identification issue isdealt with in three aspects, academic, provisions of international investment law andthe practices of the international investment dispute settlement mechanisms.Accordingly the compensation issue here is analyzed from the point of threecompensation theory, full compensation standard, no compensation standard andappropriate compensation standard. Besides, some jurists propose a balance way, full,partly, or no compensation standard, balancing the the interests of the host countriesand the foreign investors.The last part analyzes the indirect expropriation risk of the Chinese overseasoil investment.It is summarized that China should pay attention to the indirectexpropriation risk for its importancy and emergency. Besides, This part also analyzesthe defects of Chinese practice in the multilateral treaty and bilateral treaty on theindirect expropriation part. The author here give opinions on the oil investment policyorientation, investment treaty preface, the investment concept and the identificationof the indirect expropriation.