Procedural Management in International Arbitration: The Necessity of Bifurcation in Oil & Gas Disputes

Razavi, Seyed Mohammad Hassan; Mohammadian, Saman

doi:10.22050/pbr.2025.527266.1396

Procedural Management in International Arbitration: The Necessity of Bifurcation in Oil & Gas Disputes

Document Type : Original Article

Authors

Seyed Mohammad Hassan Razavi ¹

saman mohammadian ²

¹ Department of Public Law, Faculty of Law and Political Sciences, University of Tehran, Tehran, Iran

² LLM In International Commercial and Economic Law, Faculty of Law and Political Sciences, University of Tehran, Tehran, Iran

https://doi.org/10.22050/pbr.2025.527266.1396

Abstract

Bifurcation constitutes a procedural mechanism in arbitration whereby complex disputes are segmented into separate and distinct issues to be addressed individually over the course of the proceedings. This stratification enables a more organized and methodical approach, commonly by isolating jurisdictional questions from the substantive merits of the case. Through the division of the dispute into discrete phases, bifurcation enhances procedural efficiency, allowing the parties to focus their efforts on pivotal matters while avoiding unnecessary expenditure of time and resources on ancillary issues. As a result, this mechanism often contributes to notable reductions in both the duration and overall cost of the arbitral process.

In determining whether to bifurcate proceedings, arbitral tribunals assess key criteria: the preliminary objection must demonstrate substantive merit, be capable of adjudication independently of the merits, and possess the potential to resolve the dispute conclusively.

The tribunal’s decision to implement this procedural tool ultimately depends on the specific facts and prevailing circumstances of the case.

Highlights

· Introduces bifurcation as a procedural tool to streamline complex arbitral proceedings by separating preliminary issues from the merits.

· Compares tribunal practices under ICSID, UNCITRAL, and ICC regimes regarding bifurcation, citing real-world procedural orders and awards.

· Emphasizes three legal thresholds for bifurcation: the seriousness of the objection, its separability from the merits, and its potential to resolve or narrow the case.

· Enhances procedural efficiency and fairness by demonstrating how early rulings on jurisdiction or the applicable law reduce time, costs, and evidentiary burdens.

Keywords

Award

Bifurcation

ICSID

International arbitration

Oil and Gas

Subjects

Law Studies

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