Expropriation - A very real risk

Expropriation or forced government renegotiation is a big risk for oil companies that is likely to increase in times of lower oil prices. Randel Young and Richard Devine look at how to safeguard against the worst effects

Expropriation and forced government renegotiation events are particularly significant risks in the international petroleum industry, where project lead times are long and the world oil price can be variable and difficult to predict. In periods when world oil prices have risen substantially, international oil and gas developers have often faced pressures from host governments to change the balance of long-term hydrocarbon development contracts, either through outright expropriation and