1. “ THE NEGOTIATION CLIMATE”
WHAT COULD GO WRONG WHEN THE
PARTIES ARE NEGOTIATING OR HAVE
AGREED ?
By: Mbalan Nufeatalai- 150003996
Presented to: Prof. Janeth Warden Fernandez,
and Cesar Romero
March 31, 2016
CENTRE FOR ENERGY,
PETROLEUM AND
MINERAL LAW AND
POLICY

2. What is Negotiation
NEGOTIATION entails the art of bargaining between two or more
parties over an interest common to both parties.

3. THE NEGOTIATION CLIMATE refers to the atmosphere, the
Physical and Emotional Climate of the place of negotiation and the
mood of the negotiators. It answers the questions: is there comfort
and confidence? Or anxiety and frustration? Are the negotiators
emotionally invested or is there a psychological warfare ongoing?
It helps the negotiators manage the outcome they hope to achieve.
A good and skilled negotiator will look out for :
• The degree of formality/informality of proceedings required;
• Amount of relaxation/tension required;
• Development of an atmosphere of trust/trust and
• Generation of feelings of collaboration/confrontation.
• Human beings are not computers but rather creatures of strong emotions who often have
radically different perceptions, deeply held values, different backgrounds and have
difficulty communicating clearly. (Fisher et al,1991).
• A working relationship where trust, understanding, respect, and friendship are built up over
the time can make each new negotiation smoother and more efficient giving triumph over
egos, prejudices, unpredictability and negative impressions.

4. THE EMOTIONAL CLIMATE
PRE-NEGOTIATION PERIOD:
language of communication, level of
time consciousness to schedule dates
PERCEPTION
Response to anticipated behavior
founded on general research and those
gathered through pre-negotiation.
TIMING: Cultural /Religious
Ramifications
LANGUAGE- the role and choice of an
interpreter
PARTIES CONSENT
TO NEGOTIATE

5. THE PHYSICAL CLIMATE: IS THE SETUP VISION
PRODUCTIVE?
TIME
CONSCIOUSNESS
1. when does the
negotiation start?
2. is it the right time
to propose the deal?
Is the other team
comfortable with the
topic or do you see
them as being edgy?
THE SETTING:
room size, seating arrangement,
dress, food and drink, special
guests, etc.)
PLACE OF
NEGOTIATION
addresses Perception:
choice of venue,
accessibility, the trust
that the venue
may/may not have
major influence on the
process

6. Cont:
• LANGUAGE- in domestic context, it is presumed that the negotiators share a
common language. However, in the international context, it is not possible that
English is not the first language of each negotiator despite it being the world’s first
official language. Negotiators must therefore pay attention to what their counterpart
first language is and if possible provide / have them provide an interpreter. This builds
good rapport, trust, respect and facilitates good relationship.
• TIMING-What is the right timing for offers, counteroffers and concessions? Do you
want to leave a less important topic for the end and get a concession as the
counterpart wants to close the deal? By exploring various options, you can plan the
best sequence for the meeting’s agenda.

7. DEMONSTRATION:THE US vs. CHINA IN BILATERAL NEGOTIATIONS
WITH DEVELOPING STATES IN THE PETROLEUM SECTOR
AREA OF
INTEREST
USA CHINA
AIM OF
NEGOTIATION
“the Deal”
Put all the cards on the table
upfront and quickly make
concessions to resolve
disagreements.
“ Relationship first”
Long preamble, drawn out
proposals and may introduce last
minute changes to Harmonize
without losing face.
CHOICE OF
SETTING
Freedom of choice Accommodating and at the same
time, urging you to appreciate
their values.
TIMING AND
FLEXIBILITY
Confrontational, provoking,
sarcasm, use of first name
basis, firm on acts of
corruption.
Title and formal name calling, gift
giving, not interested in personal
affairs.
STRATEGY
FORMATION
Straight Forward Give and Take

8. Thank you!
Questions?

9. References
• Books
Fisher, Roger, William Ury, and Bruce Patton.
Getting To Yes. New York, N.Y.: Penguin Books, 1991. Print.
Barlow, and Finkelstien.
Negotiating Business Transactions An Extended Simulation Course.
Wolters Kluwer Law & Business, 2013
Hawkins, Micheal Hudson and Robert Cornall
The Legal Negotiator. 1991
Articles
http://www.neurovr.org/emerging/book7/9_8_Li.pdf
http://scholarship.law.missouri.edu/cgi/viewcontent.cgi?article=1403&context=jdr
https://www.linkedin.com/pulse/20140605213324-1249570-negotiation-lecturer-sr-procurement-leader
http://www.fao.org/docrep/w3210e/w3210e1g.htm