Evaluating Stabilization Clauses in Venezuela's Strategic Association Agreements for Heavy-Crude Extraction in the Orinoco Belt: The Return of a Forgotten Contractual Risk Reduction Mechanism for the Petroleum Industry
Article from: OGEL 3 (2009), in OGEL Student Special
(University of Miami School of Law) The purpose of this study is to examine the validity of stabilization clauses under international law as it applies to the petroleum industry and then to evaluate the usefulness of such clauses in protecting IOCs that have made important investments with high sunk costs in countries with elevated degrees of political risk. Further, this article will consider the different types of stabilization clauses used in the past and their modern resurrection. The four heavy-crude projects to develop Venezuela's Orinoco Belt ...