Stabilization Clauses In Oil And Gas Contracts

Overview of stabilization clauses“Concerned of any future policy reversal measure that may put at risk the terms of investment agreements, investors in the oil sector often seek guarantee, contractual or otherwise. The need to address such fears thus saw the proliferation of stabilisation clauses in oil and gas contracts. These clauses are believed to maintain the stability of the terms that were originally agreed upon. In particular, th…