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Abstract

This chapter begins with a summary of the basic types of international petroleum exploration and production agreements. It then discusses those contractual issues likely to be of primary importance to the host government and foreign investor, and describes some of the unique characteristics of international petroleum negotiations. The focus then turns to a discussion of the process of selection and training of international petroleum negotiators, including those skills and traits needed to be effective. The chapter continues with a discussion of some tools, caveats, and other considerations involved in negotiating international petroleum agreements, including the importance of “negotiating” with one’s own management, the location of negotiations, the language used, differences between “relationship” and “legalistic” countries, the problem of corruption in the deal-making process, and finally the use/nonuse of “ploys” in international negotiation. The chapter concludes with observations on some trends in the area of international petroleum agreements.

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