Introduction

Perception of petroleum as a finite, non-renewable resource and the attendant public interest dimension embedded in the contractual arrangements for its exploitation makes the petroleum industry a highly regulated and historically popular area of state intervention. Petroleum contracts are also vulnerable to various kinds of change of circumstances, which can disturb the economic equilibrium of contracts. Stability mechanisms in legal, contractual and economic forms are, therefore, needed to counter these political, fiscal and commercial risks in petroleum contracts. Thus, ...