Article by James L. McCulloch and Christina Maria Abascal Deboben
The opportunities for American oil and gas exploration companies in Latin America are excellent. However, these opportunities must be evaluated in the context of the economic, political, and legal climate in Latin America today. This Article will examine the pertinent economic, political, and legal issues relating to oil and gas development in Latin America and the potential problems for companies wanting to explore options for oil and gas exploration in Latin America. Many Latin American countries welcome American assistance because of the valuable technological knowledge that most American companies bring to the table and many jobs that are produced for local industry. However, the profits and low capital costs American companies can receive must also be weighed against a backdrop of a corrupt judicial and political reality that exists in many Latin American countries today and strict employment laws that may potentially restrict American companies from developing competent personnel in those countries.
This Article also discusses a variety of legal tools, such as arbitration and stabilization clauses, that oil and gas exploration companies may use to control safely the exploitation of a country's resources and enforce judicial decisions regarding their interests. These issues are also discussed with the impact of U.S. laws such as the Foreign Corrupt Practices Act and various international laws that have criminalized the bribery of foreign officials in the conduct of international business.
About the Author
James L. McCulloch. Senior Vice President and General Counsel, GlobalSantaFe Corporation. B.A., Tulane University; J.D., Tulane Law School.
Christina Maria Abascal Deboben. B.F.A. 1997, University of Texas at Austin; J.D. 2001, South Texas College of Law.
Citation
77 Tul. L. Rev. 1075 (2003)