Abstract
The need for stabilisation clauses in a Petroleum contract has arisen due to many factors.Some of these factors include contractual stability, bilateral and multilateral treaty obligation and to promote business efficacy and conducive climate for producers, consumers, exporters and importers of Petroleum Resources.Most national Government’s have the penchant to shift the goal post depending on the international and national developments on the industry at the prevailing time.By so doing, some of the stakeholders are disadvantaged. The objective of this paper is to determine the need and value of stabilisation contract in the Petroleum industry value chain and to make appropriate recommendations that will boost the confidence of all the parties in the sector.