Tecnicas Reunidas Saudia for Services & Contracting Co Ltd v Petroleum Chemicals And Mining Company Ltd [2025] EWHC 1785 (Comm) (14 July 2025)

IntelBrief: Sanctions Intelligence Digest

Tecnicas Reunidas Saudia ("Tecnicas") initiated a Section 67 Arbitration Act 1996 claim challenging the ICC tribunal’s jurisdiction over Petroleum Chemicals and Mining Company ("PCMC")’s claims.
The dispute arises from a subcontract related to the Fadhili gas processing plant in Saudi Arabia.
PCMC failed to file an Acknowledgment of Service (AoS) within the required 24-day period after service in December 2024, leading to a Relief from Sanctions Application which was refused by the English Commercial Court on 14 July 2025.
The Court confirmed the arbitration clause in the Purchase Order mandated ad hoc arbitration in London, not ICC arbitration.
PCMC’s procedural delays and failure to comply with service rules resulted in dismissal of their applications and loss of standing to challenge jurisdiction.

The case involves procedural sanctions under English civil procedure rules, specifically refusal of PCMC’s application for relief from sanctions due to failure to timely file AoS.
PCMC’s failure to comply with procedural deadlines effectively sanctioned them by dismissal of their jurisdictional challenges.
The refusal underscores strict enforcement of procedural compliance in arbitration-related litigation, particularly where jurisdictional challenges are concerned.

Parties involved in international arbitration must strictly adhere to service and procedural deadlines to avoid sanctions and loss of rights.
Disputes involving arbitration clauses with conflicting arbitration forums (ICC vs ad hoc London arbitration) pose jurisdictional risks.
Delays and inconsistent procedural conduct by parties (e.g., PCMC’s failure to file AoS and unfiled applications) increase litigation risk and potential for adverse rulings.
Cross-border service of documents via email, while permitted, requires careful management to avoid disputes over validity.

The dispute involves Saudi Arabia (location of the Fadhili gas plant and PCMC’s operational base), the UK (venue of arbitration and litigation), and indirectly the US (law firms involved).
Saudi Arabia’s role as a key energy producer and host of major infrastructure projects highlights the importance of clear dispute resolution mechanisms in the region.
The UK Commercial Court’s enforcement of arbitration procedural rules reinforces London’s position as a preferred arbitration hub for Middle Eastern energy disputes.
The case reflects ongoing legal friction points in international commercial arbitration involving Gulf-based entities and Western contractors.

The underlying contract relates to engineering, procurement, and construction (EPC) work on a major Saudi gas processing plant, a critical energy infrastructure project.
Delays and disputes in arbitration may impact project timelines and financial flows between Saudi and international contractors.
Enforcement of arbitration jurisdiction and procedural discipline supports contract certainty, which is vital for large-scale energy investments.
The case signals to market participants the importance of compliance with arbitration agreements to avoid costly litigation and project disruption.

Parties engaged in cross-border arbitration should ensure clear, unambiguous arbitration clauses to avoid jurisdictional conflicts.
Legal teams must prioritize timely service acknowledgment and procedural compliance to mitigate risk of sanctions.
Energy sector contractors operating in Saudi Arabia and similar jurisdictions should leverage London arbitration but prepare for strict procedural enforcement.
Monitor developments in arbitration case law in England and Saudi Arabia to anticipate enforcement trends affecting energy infrastructure contracts.
Consider early dispute resolution mechanisms to avoid protracted jurisdictional battles that delay project execution.

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**Source Notes:**

Case Title: *Tecnicas Reunidas Saudia for Services & Contracting Co Ltd v Petroleum Chemicals And Mining Company Ltd* [2025] EWHC 1785 (Comm)

Link: https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/1785.txt