Illusory Control of State Controlled Resources Through Stabilisation Clauses: Renegotiation Clauses May Save the Contract
Article from: OGEL 5 (2013), in Production Sharing Contracts
This article addresses the problem associated with loss of effective control of hydrocarbon resources in states that use production-sharing agreements. The stabilisation clause is examined first while taking account of the parties’ interests, bargaining power issues and human rights concerns. Both parties’ interests are taken into account and this article argues that a renegotiation clause could bridge the two interests whilst keeping the intent of the agreement intact. The renegotiation clause is developed during the second half of the article. Covering the purpose, role, ...