Introduction

Certain countries are changing the rules in the oil and gas sector. Some recent examples in the Western Hemisphere include Venezuela, Ecuador, and Bolivia, which have offered companies "replacement contracts." To account for these changes, oil and gas companies operating in these countries are faced with two options: accept a "replacement contract" or lose their interests. Renegotiation to allow for a "replacement contract" has been accepted as a pragmatic reaction to such a Hobson's choice. International oil and gas operations are typically conducted under joint ...