Many countries around the World are dependent on oil and gas commodities (Sunley et al, 2002). Petroleum exporting developing countries in Sub-saharan, North America and Asia, GDPs are widely constituted by oil and gas revenues. The adoption of the upstream contract is thus a task to address with scrutiny to design the most efficient legal regime for the best possible financial outcomes (Johnston, 2003). The upstream sector is based on three standard types of legal arrangement: two contractual models, Production Sharing and Risk service Contract and a non-contractual model, modern concession. The choice among these arrangements depends on the expected outcomes and much more on some drivers and characteristics. The level of control, the rewards, the risks and characteristics of acreage are important factors to look at to end up with the most relevant Exploration and Production legal regime.
See Full PDF See Full PDFOil and gas management has recently become complex due to the demands from stakeholders especially during different price regime. The study examined the tensions created by the international oil companies and the national oil companies in determining the tax regime to be adopted. More so, the study examined the risk assessment and management in the oil and gas as well as reviewed the global energy demand with respect to future energy mix and climate change. In the course of the research, it was revealed that during low price era the tensions were access to and control of hydrocarbons while during crude oil price boom the state struggles for permanent ownership, the rate and extent of exploration. Furthermore, the study showed the various tax regime used in the upstream oil and gas sector, which are Concessionary system and the Contractual system. Procedures for risk assessment and management in the petroleum industry was evaluated to include the identification of risk factors, selection of risk management, etc. Finally, Global energy demand was assessed to be related to factors like population, changes in end users demand, etc. The study concludes that to effectively manage the oil and gas assets, prospective petroleum countries need a holistic approach.
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Doubts have been raised and criticisms continue to be made about Lebanon’s choice of upstream petroleum fiscal terms and strategies to award oil and gas licenses. This is not surprising given the fact that it is a completely new experience for Lebanon, a country often stuck in stalemates stemming from political disagreements. Despite this, there are some internationally recognized guiding principles that Lebanese policymakers can follow. In terms of the allocation strategy, Lebanon selected competitive bidding, which is a positive step since this method is increasingly popular and supported by the international community. The key concern in Lebanon, however, is the choice of biddable parameters, which should be reviewed further. In terms of block delineation, Lebanon’s offshore block sizes do not fall outside the reasonable range, especially when the exploration risk and the relinquishment rule are taken into consideration. With respect to petroleum regulations, Lebanon seems to offer a middle ground between Cyprus and Israel. Some question whether the choice of petroleum fiscal regime Lebanon made is the correct one. In reality, the type of regime is less relevant. Fiscal regimes can be made equivalent in terms of both control and overall economic impact, for given oil and gas prices. The design of the regime, the interactions of different fiscal and quasi fiscal instruments, the details related to the imposition of different instruments, among others, are by far more important. The government should not focus on a specific instrument and instead take into account the net impact on the fiscal regime and the investment climate.
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The current essay will consider whether the world petroleum agreements have changed in the past seventy years and whether the modern petroleum agreements differ from the original. Firstly the essay will attempt to elaborate the extent of the state territory. Clarifying up to what point a state can claim territorial sovereignty is vital, especially in the current case where the exploitation of natural resources. Therefore, the paper will consider the international instruments that provide for the nature of the territorial integrity. As soon as the matter of discussion concerns natural resources that can be found not only in land but also at the far seas it necessary to consider the existing international legal regime for the territorial sea. The next step will be to provide an outline of the existing world petroleum agreements and comment on their nature and features. Afterwards, the essay will attempt to illustrate the potential changes in the original petroleum agreements namely the Concessions and the Production Sharing Agreements. In order to provide an adequate answer and reach the right conclusions the paper will focus in the US and the Middle East and unravel if and how the fiscal agreements evolved thought the years and if there are modern models agreements at the current era. An essential factor in the oil and gas agreements is that of ownership: that is to say on what legal basis does government own petroleum in situ and control exploitation and production. As soon as, the drilling occurs both in shore and offshore the issue of ownership concerns not only areas that can be described as territorial land but also territorial sea. ''The geographical delimitation of territorial sovereignty for petroleum exploitation is a complex public international legal issue and beyond the scope of this book. Other than landlocked countries, the extent will include oil and gas beneath each of a country's: Land territory, territorial sea appurtenant to such land, and the continental self '' (successful coursework submission in Oil and Gas Law )
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The Extractive Industries and Society
The exploration and production of oil and gas continue to be vigorously pursued by African states and international corporations—both large and small. However, with unpredictable fluctuations in oil prices it becomes more difficult to exploit these resources in ways which accrue net benefits to both the state and its citizens. The oil and gas industry in Africa continues to grow and attract new investment, especially from China and India. Despite the lower price of oil, exploration and production activities continue to be carried out. At the same time, the possibilities for oil and gas to be a blessing narrow. Natural resource-based development has always been a difficult objective for any state. The question now may be whether embracing oil and gas is socially responsible: as renewable energy becomes more cost-effective and societies transition into a post-carbon world, the prospects for African states to make good use of carbon resources are waning. In exploring the closing window for petro-development in Africa, this paper uses a comparative cross-regional analysis of trends and developments to highlight how weak legal frameworks and a lack of institutional capacity pose major challenges for the continent's states in managing their natural resources.
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