Shell PLC v. Kingdom of the Netherlands

On December 23, 2025, Shell plc initiated an Investor-State arbitration against the Kingdom of the Netherlands under the Energy Charter Treaty (ECT) before the International Centre for Settlement of Investment Disputes (ICSID) (claim registered at ICSID on January 15, 2026). The arbitration arises out of measures adopted by the Dutch government in connection with the decision to phase out gas extraction from the Groningen field. According to information disclosed by the Dutch government, Shell claims to be an indirect shareholder of the Nederlandse Aardolie Maatschappij (NAM) and alleges that the Netherlands has breached its obligations under the ECT. Shell seeks full compensation for the damage it claims to have suffered as a result of the State's measures. The arbitration follows a prior consultation phase between Shell and the Dutch government, during which the parties explored the possibility of an amicable settlement. After two consultation meetings held in 2025, Shell decided to proceed with international arbitration. At this stage, the arbitral tribunal had not yet been constituted, and no procedural decisions or pleadings had been made public. It is worth noting that this case forms part of a broader set of disputes between the Netherlands, NAM, and its shareholders Shell and ExxonMobil, including parallel domestic proceedings and other international arbitrations under the ECT concerning similar measures. The Dutch government has stated that it intends to fully contest the claims brought by Shell in the arbitration.