The Efficacy of Disputes Settlement in Promoting Investment in the Petroleum Sector in Cameroon
Keywords:
Efficacy, disputes, petroleum sector, investment, stabilisation clauses, renegotiation clauses, petroleum contractsAbstract
One unavoidable characterstics of the petroleum industry is the likely occurrence of disputes. These disputes may arise as a result of non-compliance or improper interpretation of the contractual clauses. Most Host countries as with the case of Cameroon have taken initiatives to put in place mechanisms that will help resolved these disputes when they arose. The aim of these initiatives are not only to provide an enabling investment environment that will attract investors but also, to build the trust and confidence of the investors who must have invested huge capital in this sector. In this light, the Cameroonian government has given judicial recognition to the use of stabilisation and renegotiation clauses as an attempt to prevent potential petroleum disputes from emerging. In situations where these disputes become inevitable and cannot be resolved through these clauses, the parties can seize either the court jurisdiction or used the alternatives disputes resolution mechanisms recognized under Cameroonian Petroleum Laws. The findings of this paper points out that the increased in investors interests in this sector over the years has been tied considerably to the dispositions that have been put into place by the government which serves as catalysts in resolving petroleum contract disputes in the country.
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