Joint Ventures with West African States: Oil and Gas Agreements

West Africa is considered an important region for oil and gas explorations due to its beneficial geostrategic location. There is no global framework for foreign direct investments in general or petroleum investments in particular. Instead of a single overarching regime, foreign investments are governed by a patchwork of rules and agreements. Regional energy agreements can address the specific needs of the developing host countries and offer far-reaching investment protection. However, well- drafted petroleum contracts are of the highest importance for each foreign investor. The core of this paper discusses which contractual clauses minimise the political risks of a multinational oil company. From the other party?s perspective, the paper evaluates how oil-exporting countries ensure and maximise their benefits from oil and gas investments. In addition, national and international investment insurances are introduced and compared, which can mitigate losses caused by political risks. The last chapter deals with two options of dispute settlement. Firstly, traditional diplomatic protection, and secondly, international arbitration.