Research On Indirect Expropriation Of International Oil Investment

The rapid increase of oversea investment on petroleum industry by Chinese enterprises plays an important role in securing nation's energy safety and produces economic benefits. However, if we review the history of international oil investment , periodic nationalization activities of host country appears to be serious imperil to investors . For recent years , direct expropriation have reduced accompanying with rising of indirect expropriation , which affects the benefits of our oversea investment inevitably. The article endeavor to analyse and summarize the criterion of identification and compensation of indirect expropriation by studying the regulations and measures adopted by host countries to define the indirect expropriation and finally put forward the proposals for nation and enterprises to deal with it .Chapter one introduces the indirect expropriation and international oil investment . First part is the definition and category of indirect expropriation . Furthermore, emphasize the history and present situation of direct and indirect expropriation , analyse the origin and impact on China.Chapter two summarize the criterion of identification and compensation of indirect expropriation . Two important theories will be introduced in identification standard part ,one is the character of government activities theory , the other is the effect and objective theory. Which one is applied in international arbitration practice will be introduced in this part too . The second part is compensation standard which is divided into rules of compensation and base of compensation respectively. Chapter there introduces several controversial way of indirect expropriation , including compulsive contract modification , special oil gain levy , compulsive sharing and compulsive agency . The point of this part is the history and source of compulsive contract change , the basis and steps to implement it , and the classical events . All above will lead to define the indirect expropriation by effect and objective. Then go to special oil gain levy and talk about if the activity of expropriating special oil gain levy by Ecuador and china governments come up to indirect expropriation .Chapter there is the proposal to deal with the indirect expropriation on behalf of nation and enterprises respectively. From nation's prospective , the advises are to specify the strategy of oversea oil investment and strengthen the protect measures . With respect to enterprises , choose the invest district strategically , strengthen appraisal and supervision of political risks ,and make use of bilateral treaties between third country and objective one is the most important .