Published 5 October 2018
The contractual relationship of host states and International Oil Companies ("IOCs") in Upstream Oil and Gas Industry has been consistently proven to be unstable. When taking into consideration the cyclical rise and fall of resource nationalism, the position of IOCs becomes vulnerable when oil prices are at a high level, as host states re-evaluate their contractual commitments and propose adaptions against the interest of IOCs. IOCs should subsequently develop a multi-faceted dispute management strategy, evaluating their legal tools in an adequate manner, making their dispute resolution planning, and developing an effective management strategy of the political risk. These should all be completed in order to avoid International Investment Arbitration, because this often induces a negative effect upon their reputation, and a destruction of trust in their relationship with their host state.