International Petroleum Transactions (LAWS70161)

This subject considers the legal issues and structure of transactions relating to the exploration, production, and marketing of petroleum that, owing to its economic and strategic importance, is the most important commodity traded worldwide, but this subject also addresses the affect that exploitation and consumption of petroleum resources has on the climate. This subject will give students a detailed understanding of how crude oil and gas are exploited worldwide. It will cover how countries establish sovereignty over petroleum resources and how host governments or their national (state-owned) oil companies contract with private companies to explore and develop oil and gas resources. This subject also reviews and analyses key risk-allocation contracts among petroleum companies, and contracts between petroleum companies and petroleum-services contractors that facilitate petroleum operations. As petroleum is one of the most politically charged commodities, this subject will consider extra-territorial anti-corruption law and political risk. This subject will address to extent to which carbon capture, utilisation, and storage can address the problem of emissions that are accelerating climate change. In a broader sense, this subject will help students develop better analytical skills—especially the ability to critically evaluate policy choices and contracts.

Principal topics include:

• Sovereignty over natural resources and extra-territorial legal issues
• Host government contracts covering exploration and exploitation of petroleum and carbon capture, utilization, and sequestration
• Host government policies to manage or avoid the resource curse
• Government policies and programs to ameliorate climate change
• Risk-allocation and services contracts amongst co-investors and between operators and services contractors
• Managing and contracting to avoid corruption risk