We are pleased to present the latest edition of Quantum Quarterly, a publication of King & Spalding’s International Arbitration Group. This edition includes an interview with noted energy valuation expert Wayne R. Wilson, Jr., an “Old But Still (Very) Useful” feature on the Iran-US Claims Tribunal case of Phillips Petroleum Co. v. Iran, and summaries of recent damages awards, including the Occidental v. Ecuador award, the largest so far in ICSID history. As always, we welcome any feedback you may have.

In This Issue:

- An Interview with Wayne R. Wilson, Jr.

- Recent Damages Awards — Italia Ukraina Gas

- Occidental Petroleum Corporation EDF International

- M. Meerapfel Söhne AG v. Central African Republic

- Our “Old But Still (Very) Useful” Section: Phillips Petroleum Co. v. Iran

- Who We Are

- Contacts

- Excerpt from Our “Old But Still (Very) Useful” Section - Phillips Petroleum Co. v. Iran, Award No. ITL-32-24-1, 4 IRAN-USA C.T.R. 122, 157 (Dec. 19, 1983):

Phillips is famous as one of the first investor-State cases to use the discounted cash flow (“DCF”) method to value an expropriated asset. The DCF method has become the main tool used internationally to assess the fair market value of companies. The World Bank has defined the DCF method in the following terms:

“[D]iscounted cash flow value” means the cash receipts realistically expected from the enterprise in each future year of its economic life as reasonably projected minus that year’s expected cash expenditure, after discounting this net cash flow for each year by a factor which reflects the time value of money, expected inflation, and the risk associated with such cash flow under realistic circumstances. Such discount rate may be measured by examining the rate of return available in the same market on alternative investments of comparable risk on the basis of their present value....