For more than seventy years, upstream petroleum concessions have been the backbone of oil and gas exploration and production. States granted concessions to investors, who assumed the technical and financial risk in exchange for production rights and an agreed share of value. Today, that familiar system is facing a new test: the global drive toward net zero emissions.

Many governments are announcing phase-downs of future oil and gas projects, assessing climate risk in licensing, and tightening environmental standards. Investors, in turn, must adapt to policy uncertainty, changing fiscal terms and the possibility that assets become stranded long before the end of the concession period.

From classic concessions to climate-aligned contracts

Traditional concession models were designed to secure long-term investment and maximise state revenues. Climate policy introduces additional objectives: aligning development with nationally determined contributions, managing decommissioning and methane emissions, and avoiding lock-in to high-carbon infrastructure.

Upstream Petroleum Concessions: Evolution for the Energy Transition examines how concession terms can be redesigned for this new reality. It looks at the logic of using concessions, the mechanics of awarding them, and the specific provisions that will need to change as energy systems decarbonise.

Key themes covered in the book

• Concession forms and mechanics: how states structure and award upstream rights, and how those forms interact with climate-driven policy changes.
• Risk allocation in a net zero context: what happens to investors and states when exploration or development is curtailed by climate policy or state-sponsored withdrawals.
• Investor obligations: operational standards, environmental performance, decommissioning responsibilities and reporting duties under more stringent expectations.
• Fiscal and non-fiscal terms: how royalties, tax, state participation and local content can be adjusted to support energy transition priorities.
• Future of the national oil company: the evolving role of NOCs as states balance revenue, energy security and climate commitments.

Why this matters for lawyers, regulators and investors

For legal and commercial teams, the energy transition is no longer an abstract scenario—it is embedded in policy, regulation and board-level risk management. Understanding concession terms in this context is essential for:

• Assessing new licensing rounds and bid terms.
• Renegotiating existing concessions under climate or political pressure.
• Managing investment risk, including potential stranded assets.
• Designing contracts that remain robust throughout the energy transition.

This book provides a structured framework to analyse these issues and to anticipate how upstream concessions will evolve over the coming decades.

International organisations working on energy transition

For readers who want to explore broader policy and data on the energy transition, you can consult:

• International Energy Agency (IEA)
• International Renewable Energy Agency (IRENA)
• World Bank – Energy & Extractives
• OPEC – Organization of the Petroleum Exporting Countries

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