Host governments commonly own the oil and gas resources located in their own relevant jurisdiction. However, they usually prefer to outsource the high risks and costs involved in the exploration, development and production phases in the oil and gas industry to third parties. The process of outsourcing (i.e. authorization) exploration, development and production activities to third parties is done via host granting instruments. This paper discusses their rationale and history and provides a critical analysis of the most relevant host granting instruments