The Impact of The Oil Contract on The Third-Party

Abstract

As the oil contracts are considered as the mean, which is used by foreign oil companies to gain profits  as much as possible thus, the contracted state is aiming to earn the highest possible portion of society development and prosperity, thereupon those contracts are a fertile field for disputes.

Those contracts are including huge bargains with long execution duration, economic, political and social conditions may change during the execution time, new abnormal contractual terms and conditions may rise in such time, from this standpoint, the arising of disputes between one of the parties to the oil contraction one side who is outside the contract on the other side is possible, especially since most oil contracts include rights and obligations for others, in addition to the rights and obligations contained in the national legislation of the producing country, which requires the development of mechanisms and means for how to address and avoid oil contract disputes, the foreign oil investor, when choosing between alternative places for oil investment, take into account the place that provides equipment that ensures the implementation of laws, respect for property rights and the fulfillment of contracts.