The Hardship and Force Majeure Clauses in International Petroleum Joint Venture Agreements
17 Pages Posted: 20 Jul 2011
Date Written: July 4, 2011
This piece tries to establish how parties to oil and gas agreements may rely on Hardship and Force Majeure clauses as means of encouraging renegotiation, particularly in cases lacking a contractual term providing for renegotiation. In doing so, I first give a definition of Hardship and Force Majeure clauses. I, then, provide examples form recent practice of both Hardship and Force Majeure clauses. I conclude that Hardship clauses clearly can deal with renegotiation but the traditional view is that Force Majeure clauses deal with suspension or termination of the contracts. I, hence, argued that although the traditional response was suspension or termination of contract, another possible response is renegotiation.
Keywords: hardship, force majeure, international petroleum, joint venture, agreements
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