The Requirement to Renegotiate the Oil Contracts

Abstract

The balance of the oil contract is crucial to avoid disputes between the two parties, so the parties to the contract must create astate of  balance  between the objective of the oil company, which is that the contract remains as it is without prejudice to it on the one hand, and the requirements of sovereignty and basic development that the state is even to achieve to the maximum possible degree on the other hand, this is done  by anticipating  the issues on which disputes may arise, and determining means of preventing them, such as including conditions in the oil contract to deal with these issues, the most important of which is the re-negotiation clause,  as the reality of oil contracts concluded between foreign companies and host oil states reveals the existence of means to avoid the disputes between them that may be raised by those contracts, including  the re-negotiation requirement  to ensure  the maximum  balance between the requirements of stability and development, as well as to maintain affair balance between  the sovereignty of  the host country over its oil resources and the protection of foreign investment.