The Issue of Resource Nationalism : Risk Engineering and Dispute Management in the Oil and Gas Industry

In the recent past the specter of resource nationalism has proved to be a daunting propsect for international oil companies' (IOCs) business. Such a phenomenon is certainly a big risk factor for IOCs, and it leads to disputes between IOCs and their host states. There are ways and means — legal and extra-legal — by virtue of which such risks may be tackled. The purpose of this article is to discuss these so that IOCs find them as useful tools for the purpose of protecting their interests in this vulnerable situation. The article first discusses the meaning of resource nationalism; it then proceeds to examine the role of the rule of law in the event of resource nationalism. This is followed by an appraisal of the risk management toolbox, i.e., the legal and extra-legal means of risk and dispute management. The article then concludes with some remarks