Drastic changes in oil prices, like the one we are witnessing today, typically push many host governments to renegotiate contracts with private investors. This, however, needs not to be the case if contracts were properly drafted to start with.
As an active participant in the OECD Policy Dialogue on Natural Resource-based Development, Dr Carole Nakhle, CEO of Crystol Energy, contributed to the development of the organisation’s Guiding Principles for Durable Extractive Contracts, which set out eight principles and supporting commentary that host governments and investors can use as a common reference for future negotiations of enduring, sustainable and mutually beneficial extractive contracts.
Dr Nakhle was one of the few international experts who presented the principles to the OECD’s Board for endorsement. In this short video, she summarises the value of the Guiding Principles.
“Fiscal Stabilisation in Oil and Gas Contracts: Evidence and Implications”, Dr Carole Nakhle, Mar 2016
“Host Governments and Oil Companies in Today’s Market Conditions and Trends”, Dr Carole Nakhle, April 2020