Significant changes in international contracts on oil and gas purchase and sale

Abstract

The article discusses the theory of significant changes in the oil and gas purchase and sale contracts that violate the economic balance of the contracting parties. The author emphasizes that during the existing global energy crisis, the issue of significant changes in the oil and gas purchase and sale contracts is becoming particularly relevant. Such contracts are most often long-term contracts, and during their term, certain events may occur that entail a significant change in circumstances. Given that the contracts for oil and gas purchase and sale are «cascading» («pyramidal»), as they affect some other energy contracts, it is particularly important to address the issue of a significant change of circumstances in these contracts to preserve or restore the violated economic balance of the contracting parties. It is essential to determine a mechanism for eliminating the imbalance that arises in the event of a significant change in circumstances without terminating long-term contracts for the oil and gas purchase and sale since these contracts are critical for the contracting parties as well as for industrial enterprises and the general population.