Introduction

In modern-day international investment practice, especially in connection with the exploitation of natural resources, Production-Sharing Agreements have taken over the role of the classic concession agreement in many cases. Like their predecessors, these contracts are particularly vulnerable to disturbances in the commercial balance agreed to or assumed by the parties at the conclusion of the contract. This is caused primarily by three things. Firstly, these are classic examples of long term contracts. In the petroleum industry, the commitment of significant capital for ...