Parliament and Extractive Industries: Unit 5: Stage 2. Contracts

 

Learning Objectives

Legal Extraction

After studying this unit, you should be able to:

  • Understand the legal basis for the ownership of resources and their exploration, development and production
  • Understand the relationship between the constitution, a sector law or code and a license agreement
  • Be able to explain the pro’s and con’s of having a National Oil or Mining Company
  • Be able to tell how public oversight and control over oil companies can be enhanced by parliament
  • Know what corporate social responsibility is in relation to extractive industries
  • Be able to explain the elements of a good procurement process
  • Know the difference between the primary types of contracts
  • Understand the value of contract transparency and how contract transparency relates to a Freedom of Information law
  • Appreciate the need for documentation of exploration and exploitation contracts and territories

    Introduction and Overview

    In this stage of the extractive industries value chain governments negotiate a contract with relevant firms. These contracts are crucial, as they establish how much the government will receive from the exploitation of their resources, and can also have important clauses for communities and the environment. This Unit will discuss the legal context of extractive industries contracts, best practices regarding the process of licensing and negotiation, the issue of contract confidentiality and transparency. Finally it will address how parliament can participate best in this stage of value chain.

 

 

 

 

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