Changes to contractual terms and the use of hydrocarbons
; Pravni fakultet Sveučilišta u Splitu
For the contract on exploitation of hydrocarbons it has been shown that great attention should be paid to the negotiation phase. The durability of the contract is usually a result of the fact that the negotiators had equal bargaining power. However, the study of basic legal mechanisms, of the process of re-negotiation and different remedies that are used in these contracts points to the conclusion that such agreements must constantly be updated. It is therefore necessary for such contracts to incorporate provisions governing the procedure for their "painless" change. These provisions should be adaptable to the new circumstances and "rules of the game" must be clear to the contractors from the outset. If these questions are regulated in detail then there is less possibility of costly and lengthy disputes emerging. When negotiating, the parties should take into account all the circumstances of the case and find the right measure for use of all legal means described above in order to achieve the main goal - flexibility of the contract and its adaptability to the new circumstances. The paper showed that none of the given solutions has the absolute advantage over the others, but the best results are achieved by skillful combining a large number of these legal remedies. The ultimate goal would be that the host state realize the full extent of its sovereign rights over its natural energy resources eventually.
It is for many countries that are burdened by economic problems a tall order, because foreign investors in many cases continue to have '' the last word '' even when the host country holds, for example, a majority of shares in the company.
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