Stabilisation in Investment Contracts and Changes of Rules in Host Countries: Tools for Oil & Gas Investors

Association of International Petroleum Negotiators
(AIPN)

Stabilisation in Investment Contracts and
Changes of Rules in Host Countries: Tools for
Oil & Gas Investors

Peter D Cameron
ACIArb
PhD (University of Edinburgh), LLB (Joint Honours) (University of Edinburgh)
Professor of International Energy Law and Policy
CEPMLP, University of Dundee, UK
[e-mail]

FINAL REPORT
5 July 2006

© Copyright Peter D Cameron

PDCameron/AIPN/Final Report. 5 July 2006

Table of Contents
TABLE OF CONTENTS .......................................................................................................................2
EXECUTIVE SUMMARY & GUIDE TO THE READER ................................................................4
GLOSSARY OF TERMS AND ACRONYMS ....................................................................................6
FOREWORD & ACKNOWLEDGEMENTS ......................................................................................8
Scope of the Study ...........................................................................................................................8
Structure of the Study......................................................................................................................9
PART 1: THE PROBLEM ..................................................................................................................12
CHAPTER 1: WHY ATTEMPT TO STABILISE INVESTMENT CONTRACTS IN THE OIL
AND GAS INDUSTRY? ......................................................................................................................12
1.1 THE QUESTION: TO STABILISE OR NOT? .......................................................................................12
1.2 TWO LIMITATIONS ON STABILITY .................................................................................................13
1.3 HOW HAS STABILITY BEEN ADDRESSED OVER THE YEARS?

Bibliography: Bolivia: Model Production Sharing Contract, 1997. Committee for Investments (the Competent Body) and the Zhaikmunai Limited Liability Partnership (the Contractor), Kazakhstan, 1997. Mozambique: Production Sharing Contract for the Sofala Field, 1998. Model Contract for Oil and Gas (Decree 108 of 17 January 1997) and Model Contract of 31 July 2001. Nepal: Model Production Sharing Contract, 1994.