The Duty to Negotiate in Good Faith and the Enforceability of Short-Form Natural Gas Clauses in Production Sharing Agreements
Article from: TDM 5 (2007), in International Oil & Gas Arbitration
Infrastructure for the transportation and consumption of natural gas is lacking in many regions of the world where the commodity is available. As such, most international oil contracts, especially Production Sharing Agreements ("PSA"), provide only briefly, if at all, for the discovery of non-associated natural gas. With more and more emerging markets for natural gas and the future prospects of LNG, international energy companies have an increasing desire to exploit these discoveries and enforce a foreign government's duty under the "short-form" gas provision contained in the oil ...