Movement of Bargaining Power: International Oil Companies and Developing Countries


Legal structures of the upstream sector in many countries have achieved a balance between meeting the economic objectives of International Oil Companies (IOCs) and Host States to facilitate win-win upstream petroleum development scenarios for both parties. Previously, this was not as frequently the case, and this paper tracks the historical shifts in legislative structures for benefit of either party at the expense of the other using their political-economic influence respectively. It ends with a commentary on the current balance of bargaining power between both IOCs and Host States in light of modern-day factors, particularly the increase in the development and use of clean energy sources.

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