The Legal Policy In The Gas And Oil Industry Essay

The Legal Policy In The Gas And Oil Industry - Essay Example All these forms of contract are been utilized for accomplishing the same purpose i.e. promoting the economic growth of oil and gas production and extraction with sustainable environmental effect. Especially mentioning, the above-stated contract agreements possess own advantages along with disadvantages. Malaysian oil and gas industry plays a key part in developing the economy of the nation through contributing 40% in the national revenues. The major issues that arise during the selection of contract in this regard include the share of the distribution of profit between the government and companies participating in the contractual agreement and the cost structure that the involved parties need to be accepted. It will be vital to mention that oil and gas industry plays a vital part in boosting the overall growth of the nations in the international scenario. Thus, the proper selection of a specific contractual agreement will not only assist the respective governments of the nations to e radicate the issues but also impact the overall growth of the economy at large. Besides, the prior reason for undertaking an effective contractual agreement in the oil and gas industry between countries and international oil companies is to utilize the reserves in an appropriate manner2. However, at certain times, the selected approach of the contract becomes complicated, which significantly leads towards rising disputes between the involved parties. Moreover, contractors need to follow varied industrial norms, environmental laws, international and comparative policies of different international environmental agencies. By taking into concern the international scenario, it can be inferred that the notion of sharing production and operational activities of oil and gas amongst states and companies by forming an efficient commercial enterprise was significantly developed during  the 1950s in Bolivia.