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Oil and gas contracts: a law in context analysis using Nigeria as a case studyHaynes, Andrew; Adebayo, Jamiu Olohundare (University of Wolverhampton, 2018-12-31)The legal and regulatory framework of the oil and gas industry and the contracting obligations arising thereof have evolved over time in many forms across oil producing states. Given the peculiarities of each of these oil producing states, the framework is constantly changing. The changing face of politics, climate and rapidly developing technology are changing the landscape of the industry, demanding a fundamental need for petroleum resource-endowed states to take a strategic view and choose what legal framework and contracting approaches are likely to deliver their ultimate objective: optimum production with topmost financial gains. The idea behind the exploration and exploitation of natural resources is to attract foreign direct investment (FDI) into developing states with the anticipation that such investment will put them on the centre stage of global economics and lead to an improvement in research and technology transfer that would sustain economic growth and development. However, the objective of transnational corporations is to maximise their profits. Ultimately, it is the exploration licensing contracts that states use to implement oil exploration and exploitation policies. The present research therefore seeks to look at the dynamics of the legal and regulatory framework of the oil and gas industry focussing on its everchanging contract types and nature. The research attempts to look at the causes of the imbalance in international oil and gas contracts with an eye on the observation that one of the causes of the imbalance are the investment treaties because they focus on a state’s obligations with little or no focus on obligations from transnational corporations towards the states. Some critical clauses that need to be taken into account by parties to the contract are also explored because it is argued that contractual clauses are also among the causes of imbalance in international oil and gas contracts. This research therefore addresses the causes of imbalance by looking at the problems associated with investment treaties and the long-term contractual relationship between the host states and the transnational corporations, particularly the associated risks with oil and gas contracts such as; political, economic, natural and technical risks. Essentially, the study will narrow down on the processes, technicalities, case studies and the features of four main types of oil and gas contracts namely, Production Sharing Agreement, Joint Ventures, Service Contracts and the two Concessions, (Old and New). The research also attempted to answer the following questions: what is the current structure of oil contracts and to what extent can parties’ commitments be altered to ensure the sustenance of economic stability? Which type of contract is the best for development and financial purposes? What are the causes of imbalance in the oil contract and to what extent have the principles of international environmental law been utilised at a state level and whether developing countries have been able to overcome the pressures from transnational corporations on the issue of environmental law? The research will address these questions through its five chapters.