Protection against Default in Long Term Petroleum Joint Ventures
Article from: OGEL 5 (2013), in Upstream Petroleum Regulation incl. Host Government Contracts
Introduction
This research paper explores a range of possible solutions to the default risk problem as it appears in joint ventures in the petroleum industry. Most of these model solutions have been developed by industry associations, some of them from different regions, and in a few cases (for instance, Norway and Greenland) they have been devised by governments. The principal remedy employed in virtually all of these models is the partial or complete forfeiture of a defaulting party's interests in the project, or a variant of this mechanism (such as a withering, lien or buy-out); but these ...