1. Diogo Xavier da Cunha Maputo, 1 st June 2005 CONTRACT STABILITY & DISPUTE RESOLUTION A couple of oil investment essentials. The Mozambican example. 9 th AFRICA OIL & GAS, TRADE & FINANCE CONFERENCE NOT AN OFFICIAL UNCTAD RECORD

2.  Investors’ Typical Concerns  The States’ Perspective  Aiming for a Balanced Solution 1 st June 2005 Conflicting Interests

3.  Changes in Industry Patterns  Nationalism  Ideological Hostility  Contracts Made by Former Political Regimes 1 st June 2005 Historical Risks of Investment

4. Contract Stability  Origin and Forms of Contract Instability  Sovereignty v. Stability  History & Purpose of the Stabilization Clause  The Nature of Renegotiation Clauses  The Adaptation Clauses  The Force Majeure Clauses  The Renegotiation Clauses 1 st June 2005

5. Dispute Resolution  An Endless Source of Disputes  The Duty to Negotiate  The Formation of Lex Petrolea  The Separability of the Arbitration Clause  Recommendations Whilst Negotiating and Drafting an Arbitration Clause

6.  Contract Stability under Mozambican Law  Constitutional Law  General Principles of Law – Article 437 of the Civil Code  Petroleum Law  Code of Fiscal Benefits  Petroleum Production Tax Regulations 1 st June 2005 The Mozambican Example

7.  Arbitration: A True Option  Arbitration Law  Petroleum Law  Mozambique Party to Important International Conventions and Bilateral Treaties  1958 New York Convention on Recognition and Enforcement of Foreign Arbitral Awards 1 st June 2005 The Mozambican Example

8. Thank You Diogo Xavier da Cunha Diogo.Cunha@Mirandalawfirm.com www.mirandalawfirm.com