Originally from World Arbitration and Mediation Review

I. BACKGROUND AND AGREEMENT

Drilling Joint Technologies (“DJT”) is a company based in Oldoilland, dating back to the late 19th century.  It manufactures drilling technology for the oil and gas industry, in particular drill-bits that can uniquely be used in some difficult geological formations.  DJT’s drill-bit innovations are protected by patents on a world-wide basis and their specialist drill-bits are referred to throughout the industry as DJT-bits.

Highland Resources Company (“HRC”) is a manufacturing company based in Newlyrich, where oil and gas deposits were discovered at the end of the 20th century.  The finds in Newlyrich are in the sort of difficult geological formations where only DJT-bits can be used.

The finds were thought to be limited to Newlyrich but the formations in which they are found were subsequently found to extend to Neighbourland, where exploration and development is now also taking place.