Nelson Bunker Hunt v. BP Exploration Company (Libya) Ltd. 492 F.Supp. 885 custom essay.


FACTS: in 1965, Hunt was granted Concession No. 65 from Libya. BP formed an Operating Agreement with Hunt in 1960 in which BP would receive half of the interest in the oil field. Hunt would receive ‘farm in” cash reimbursement and oil while BP funded the exploration and discovery of the oil. The profits were to be split accordingly so that BP would first recover its costs. In 1971 the Libyan Government was overthrown Gadaffi and seized BP share of the oil field. At the time of the take-over, BP had only recovered half of its costs. BP brought suit in England to recover the remaining costs. BP was awarded more than $23 million. Hunt and BP both appealed the decision. The English Court has yet to decide on the appeal.

ISSUE: Should the English judgment based on the Frustrated Contracts Act of 1943 be recognized?

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