Interlocutory Award in Case Concerning SEDCO Inc. v. National Iranian Oil Company and the Islamic Republic of Iran

After the Iranian Revolution, the Islamic Republic of Iran (the Republic) (defendant) expropriated various foreign business interests, including SEDCO, Inc.'s (plaintiff) stake in the SEDIRAN drilling company. Under the Algiers Accords, the U.S. and Iran agreed to resolve such disputes through arbitration before the Iran-United States Claims Tribunal. SEDCO argued customary international law entitled it to full compensation (net assets plus expected future earnings), while the Republic argued the proper standard should instead avoid unjust enrichment and, alternatively, that any compensation should be calculated using the business's net book value.