‘The Stabilization Clause of The Baku-Tbilisi-Ceyhan Pipeline Agreements: A Legal Review

International investment contracts usually involve stabilization clauses that are prevalently used in infrastructure, telecommunication, and energy sectors, especially the oil gas extraction industries. In petroleum industry, foreign investors providing advanced technology substantial financial capital for development often face political risks developing countries such as expropriation of pipeline investments, increased taxes, other fees projects throughout contractual performance. These provisions disincentive host states from enacting new laws or enhancing their regulations on environmental, public health, labor, human rights standards. The clause Baku-Tbilisi-Ceyhan (BTC) Pipeline Agreement was criticized a great obstacle to Turkey’s regulatory ability enhance Indeed, BTC’s neutralizes forty years. This paper proposes some important legal tools alleviate these concerns over contracts.