the new england petroleum corporation nepco a u s corporation obtained refined oil from its wholly owned bahamas subsidiary refinery petco in 1968

PETCO then entered into a new contract with the National Oil Corporation, which was wholly owned by the Libyan government. One month after execution of the contract, Libya imposed an oil embargo on the United States, and National canceled its contract with PETCO. Three months later, after a dramatic increase in oil prices, PETCO executed a new contract with National. National allegedly breached that contract as well.