The techniques of negotiating petroleum and mining contracts have significantly changed over the years, particularly since the period of decolonisation. These techniques became consolidated during what may be called the period of economic stabilisation of the petroleum providing countries. Such resources belong to the country in which they are found, and it has been the common practice for states to ensure that they remain under their control and ownership. In negotiating these contracts, prospective licensees should appreciate that licensors are the real owners of these resources, and that as independent sovereign states, they have bargaining powers. 1 Furthermore, a sovereign state, from a legal standpoint, is stronger than a licensee, which is usually a transnational corporation, a private corporation, incorporated in a foreign jurisdiction.