ABSTRACT
The first chapter outlines the significance of this study, the scope of the research and the terminology and concepts that are central to this book, such as host government contracts, political risks and stabilisation provisions. Understanding political risks is significant because the analysis of political risk in the energy sector aids an understanding of the reasons why energy investment contracts are exposed to conflict and also why stability provisions are inserted in host government agreements as a legal tool. This chapter also provides a background to the Baku–Tbilisi–Ceyhan (BTC) project as well as the geographical, economic and political context of Azerbaijan and Turkey.
