This document summarizes global trends in oil and gas contracts. It discusses that typically, petroleum contracts allocate ownership rights and responsibilities between states and investors. The contracts also outline fiscal terms, environmental protections, and other key provisions. Recently there have been trends of increasing government take of revenues as prices rise, greater transparency requirements in contracts, and debates around stabilizing fiscal terms versus allowing legal changes. Local content policies aim to benefit local economies but must balance protectionism with competitiveness.
TYPES OF PETROLEUM CONTRACTS AGREEMENT; Product Sharing Contract/Agreement (PSC/PSA); Concession (or Tax-and-Royalty) Contracts; STABILIZATION; EGYPTIAN HYDROCARBON FISCAL REGIME;; Main Differences Concessionary & Production Sharing Contracts (PSCs); Participation/Joint Venture/ Association (or Arrangements); Service Contracts; WHAT CHOICES OF LAW ARE POSSIBLE? Rule of Capture; Law of the Sea Act 77 & the Rule of Capture; KEY ISSUES IN UNITIZATION AGREEMENTS; UNITIZATION CLAUSES; Discretionary Unitization Clauses; Non-Discretionary Unitization Clauses; Cross-border or International Unitization; EGYPT PETROLEUM FUTURE; UNDERSTANDING EGYPT; PRODUCTION SHARING CONTRACTS AND TAX BARRELS; Egypt Production Sharing Contract (PSC); Typical Egypt Development Lease
Former IDS Fellow, Philip Daniel, will explore design principles for taxing extractive industries and touch briefly on renewed challenges from the commodity price outlook, international tax problems and environmental imperatives.
Philip is co-editor and contributor for International Taxation and the Extractive Industries (Routledge, 2017) and for The Taxation of Petroleum and Minerals: Principles, Problems and Practice (Routledge, 2010). Philip worked at the Fiscal Affairs Department of the IMF in Washington DC, 2006-2015.
Phillip's recent advisory work has covered Nigeria, Trinidad and Tobago, South Africa and Uganda. He is now Honorary Professor, School of Social Sciences, University of Dundee in the Centre for Energy, Petroleum and Minerals Law and Policy. Philip was a Fellow of IDS from 1981 to 1994.
TYPES OF PETROLEUM CONTRACTS AGREEMENT; Product Sharing Contract/Agreement (PSC/PSA); Concession (or Tax-and-Royalty) Contracts; STABILIZATION; EGYPTIAN HYDROCARBON FISCAL REGIME;; Main Differences Concessionary & Production Sharing Contracts (PSCs); Participation/Joint Venture/ Association (or Arrangements); Service Contracts; WHAT CHOICES OF LAW ARE POSSIBLE? Rule of Capture; Law of the Sea Act 77 & the Rule of Capture; KEY ISSUES IN UNITIZATION AGREEMENTS; UNITIZATION CLAUSES; Discretionary Unitization Clauses; Non-Discretionary Unitization Clauses; Cross-border or International Unitization; EGYPT PETROLEUM FUTURE; UNDERSTANDING EGYPT; PRODUCTION SHARING CONTRACTS AND TAX BARRELS; Egypt Production Sharing Contract (PSC); Typical Egypt Development Lease
Former IDS Fellow, Philip Daniel, will explore design principles for taxing extractive industries and touch briefly on renewed challenges from the commodity price outlook, international tax problems and environmental imperatives.
Philip is co-editor and contributor for International Taxation and the Extractive Industries (Routledge, 2017) and for The Taxation of Petroleum and Minerals: Principles, Problems and Practice (Routledge, 2010). Philip worked at the Fiscal Affairs Department of the IMF in Washington DC, 2006-2015.
Phillip's recent advisory work has covered Nigeria, Trinidad and Tobago, South Africa and Uganda. He is now Honorary Professor, School of Social Sciences, University of Dundee in the Centre for Energy, Petroleum and Minerals Law and Policy. Philip was a Fellow of IDS from 1981 to 1994.
A whole new world! International tax structuring in light of the OECD BEPS project.
• What does this all mean in practice? How will the OECD BEPS project have legal effect?
• Tax structuring, before and after: the effect of the OECD BEPS project on international business structures
• Tax compliance and risk management, before and after: what will your business have to do differently going forward?
Omleen Ajimal, Director of International Tax, Squire Sanders
Objective Capital's Africa Resources Investment Congress 2011
Ironmongers' Hall, City of London
14-15 June 2011
Day 1: Africa Resources
Speaker: Giulio Carini, Global WItness
Fiscal Risk Advancements in Petroleum ContractsYasir Karam
Study analysis of determination of fiscal risk implemented in several models of petroleum contracts, a study within licensing bid rounds contracting system of Iraq
StrategicFit - French unconventionals regulationStrategicFit
StrategicFIt has written the following presentation in response to unconventional gas regulation in France. It provides insight into the recent fracking ban, the structure of relevant regulations and the process for engaging with regulators.
The presentation has been updated following Total's announcement on January 19th 2012 to appeal against the withdrawal of its permit to explore and excavate shale gas in France.
Presentation on the Brazilian Program of Private Participation in Infrastructure, describing its main features and current problems.
The presentation was delivered to a trade mission to Brazil of the Government of Pennsylvania. São Paulo, April 9th 2013.
The Policy and Regulatory Framework for Renewable EnergyMirzo Ibragimov
On 5-6 December, Tashkent hosted a workshop on renewable energy (RE) policy development jointly organized by the Government of Uzbekistan and the World Bank Group (WBG) in partnership with the International Renewable Energy Agency (IRENA). The presentation was delivered during the above-mentioned event.
A whole new world! International tax structuring in light of the OECD BEPS project.
• What does this all mean in practice? How will the OECD BEPS project have legal effect?
• Tax structuring, before and after: the effect of the OECD BEPS project on international business structures
• Tax compliance and risk management, before and after: what will your business have to do differently going forward?
Omleen Ajimal, Director of International Tax, Squire Sanders
Objective Capital's Africa Resources Investment Congress 2011
Ironmongers' Hall, City of London
14-15 June 2011
Day 1: Africa Resources
Speaker: Giulio Carini, Global WItness
Fiscal Risk Advancements in Petroleum ContractsYasir Karam
Study analysis of determination of fiscal risk implemented in several models of petroleum contracts, a study within licensing bid rounds contracting system of Iraq
StrategicFit - French unconventionals regulationStrategicFit
StrategicFIt has written the following presentation in response to unconventional gas regulation in France. It provides insight into the recent fracking ban, the structure of relevant regulations and the process for engaging with regulators.
The presentation has been updated following Total's announcement on January 19th 2012 to appeal against the withdrawal of its permit to explore and excavate shale gas in France.
Presentation on the Brazilian Program of Private Participation in Infrastructure, describing its main features and current problems.
The presentation was delivered to a trade mission to Brazil of the Government of Pennsylvania. São Paulo, April 9th 2013.
The Policy and Regulatory Framework for Renewable EnergyMirzo Ibragimov
On 5-6 December, Tashkent hosted a workshop on renewable energy (RE) policy development jointly organized by the Government of Uzbekistan and the World Bank Group (WBG) in partnership with the International Renewable Energy Agency (IRENA). The presentation was delivered during the above-mentioned event.
BALDVIN BJÖRN HARALDSSON, BBA LEGAL
IGC 2018 - Breaking the Barriers
The 4th Iceland Geothermal Conference will be hosted in Iceland in April 2018. The conference offers an in-depth discussion of the barriers that hinder development of the geothermal sector and how to overcome them. It also focuses on the business environment through three separate themes: vision, development, and operations. Having established itself as an important regular conference of the international community, IGC 2018 brought together more than 600 participants from 40 countries from around the world.
The 4th Iceland Geothermal Conference will be hosted in Iceland in April 2018. The conference offers an in-depth discussion of the barriers that hinder development of the geothermal sector and how to overcome them.
These highlights from the OECD Investment Policy Review of Myanmar were presented by Stephen Thomsen at launch events in Myanmar on the 1 and 4 March 2014. Myanmar's Union Minister of National Planning and Economic Development, Dr. Kan Zaw, praised the comprehensive nature of the report and said that it would help to guide the government in solidifying investment climate reforms and in promoting more and better investment.
Find out more at http://www.oecd.org/daf/inv/investment-policy/investment-policy-reform-in-myanmar.htm
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
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#pinetwork
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.
Trends in oil contracts mohammed amin
1. Global Trends in Oil and Gas
Contracts
Mohammed Amin Adam
GIMPA, Accra
27 JUNE 2013
2. The basis for a petroleum contract
• Petroleum in its natural state belongs to the
state
• Investors invest money to explore for oil,
develop and produce
• Petroleum industry is risky, hence the need to
apportion risks between the state and the
investor
• This is through a contractual agreement
3. The basis for a petroleum contract
• A model contract contains
– Ownership rights
– Rights acquisition – and periods for exploitation
– Share of costs
– Share of petroleum
– Fiscal terms
– Measurement of petroleum
– Environmental protection
– Health, Safety and Environment
– Decommissioning
– Local content
6. Global Contractual Issues
• Major Issues
– Changes in Fiscal Regimes
– New Environmental Codes (gas flaring, spills, etc)
– Contract Transparency
– Stability of contracts
• Others
– Local content
– Corporate Social Responsibility & Community rights
7. Fiscal Regimes
• Except in a few countries in the world, the State is the owner
of petroleum resources in the subsoil.
• Governments have responsibility and the right to maximize the
benefits from the exploitation of petroleum resources for the
benefit of the state.
• The word “fiscal” includes all government revenues from
petroleum exploitation
• The government revenues as a percentage of the total divisible
income (revenues less costs) is defined as “government take”
• Misunderstanding between ‘Government Take’ and
‘Government Revenues’
• In this presentation, they are used interchangeably.
7
8. Trends of Government Take
• 1974 – 1984: strong increases in government take:
- Increase in oil prices
- Reduction in acreage through nationalizations
• 1984 – 2003: decreases in government take:
- Decrease in oil prices
- Expansion of acreage (political, technological)
• 2003 – 2010: increases in government take:
- Increase in oil prices and also greater volatility of
oil and gas prices
- No more new acreage
- New discovery countries free-riding high
government take regimes
8
9. Trends in Government Take
2003 – 2010
• Different methods in different countries.
• A number of countries had already created fiscal systems that
automatically resulted in a higher government take under higher
oil prices (Progressive Additional Oil Entitlements). Examples:
– Angola
– Malaysia
–Trinidad and Tobago
– India
– Libya, and
– Russia
• Using the bid system for new acreage to increase terms: Libya,
India
• Creating higher levels of state participation: Venezuela,
Algeria, or
• New legislation and renegotiations: Nigeria
9
10. Future Trends in Government Take
• The main trends in the structure of the oil and gas
government take are the following:
– Reduction of corporate income tax rates
– Globalization of VAT
– Possible wider introduction of carbon taxes
– Reduction of import duties and cost base taxes
– More emphasis on price sensitive fiscal features
–Transition to fiscal structures designed for “expensive”
oil and gas resources
• Oil fields production is declining
• Oil and gas development costs increasing
10
15. The Environment
• Contracts contain provisions for Environmental Impact
Assessments and decommissioning (or abandonment)
– They establish the baseline for subsequent allocation and
apportionment of environmental costs and responsibilities within
contracts.
– Respond to International Environmental Conventions
• Remedial provisions for environmental issues in contracts are:
– The ‘’polluter-pay-principle’’
– ‘’Best practises’’ clause
– ‘’Industry standards” clause
– ‘’Oil companies country standards’’ clause
• New Environmental Codes emerging
– Climate change considerations
– Change in bargaining power of mature producers
– The BP oil spill in the Gulf of Mexico
16. Environment: Future Trends in Contracts
• Introduction of Carbon taxes
• Strategic Environmental Impact Assessments are becoming
popular in developing countries
• Exclusion of environmental requirements from stability clauses.
E.g. Kazakhstan’s oil and gas contracts have not extended
stabilisation provisions to environmental requirements
– The State and civil society argument
• Evolving nature of environmental issues globally
• Environmental penalties have become increasing sources
of revenues for local authorities
– Oil companies raise issues of uncertainty
• Mandatory Environmental reporting (IFC Environmental
disclosure)
• Consultations with communities on Decommissioning Plans
(World Bank, 2009 – Environmental Resource Management)
17. Some Best Practices (Lowe & Anderson, 2010)
Provision Best Practice
Environmental
Impact
Assessment
Reference to applicability of domestic environmental legislation
· Requirement that EIA be conducted by a reputable firm that is approved by
the environmental ministry
· Requirement for community consultation
Protected Areas · Prohibition on entry to or passage through protected areas without
express permission of the environmental ministry
Emergencies &
Spills
· Requirement for a contingency plan
· Requirement to immediately notify government when accident/spill occurs
· Requirement to take immediate and appropriate action
· Stipulation that if action is not taken by the contractor the state can step in
and charge the contractor for expenses
Flaring · Prohibit except in emergencies
Liability, Indemnity
&
Insurance
· Strict liability for environmental damage
· Requirement that state be indemnified for third party claims except for (i)
environmental damage existing
prior to operations; or (ii) environmental damage caused by state actors
· Development of an indemnity fund
· Requirement that insurance cover environmental damage
Transparency · Broad definition of environmental damage included in the contract
· Requirement for environmental reporting
18. Transparency and Contracts
• Principles of transparency require that there should be:
– access to information
– rights of public participation (right to comment on oil and
gas Contracts)
– Right to monitor their implementation
• Confidentiality in Contracts
– Most Contracts contain commercially sensitive information
– There are moves to limit confidentiality to technical
provisions
– E.g. Ghana’s Petroleum Commission Act, requires public
reporting on most operational aspects of Contracts
– In some countries, there is Confidentiality reversal –
Norway (1981 vrs 2002) Columbia (1987, 1998 vrs 2005,
2006 for 5 yrs)
19. Transparency - Current Global Trends
• Contract disclosure is becoming very important. E.g. Liberia,
Timor Leste and Ghana – published contracts
– Mandatory Disclosures required in Ghana
• Open bidding process on the increase - Libya, India, Brazil
• The EITI and United States’ Dodd Frank are changing the trend
in contract transparency ( payment disclosure requirements
by companies)
• Now EU Transparency Directives
• Open contracting initiative
• Some countries have legislated transparency – Freedom of
Information laws
• But Stabilization clauses remain challenges for new
legislations
20. Contract Stability
• ‘Stabilisation clauses’ in oil and gas contracts are legal devices
that foreign investors commonly use to manage so-called
‘non-technical risks’. Used in contracts with host countries:
– Where there is considerable political, regulatory or
institutional uncertainty
– when standards addressing potential impacts of the
investment have not been developed in host states.
• Why Stabilization in petroleum investment contracts?
– Investments are Long term
– Investments are capital intensive
– The risks of vulnerability in petroleum investments are
very high
• Origin – the period of nationalizations in Latin American
countries
21. Forms of Stabilization
• Freezing clauses – Applicable law will be the law in effect on the
Effective Date of the Contract – In Angola and Tunisia contracts, no
laws on fiscal and non-fiscal terms can be changed during contract
period.
• Intangibility clauses – Contract cannot be modified/amended
except by mutual consent of the parties
• Allocation clauses – NOC bears fiscal risk
– NOC pays all taxes and royalties out of its share
– NOC pays all taxes and royalties regardless of its source of funds
– NOC indemnifies IOC for IOC’s payment of taxes and royalties
• Renegotiation clauses – Parties agree that in the event of change of
circumstances or law, they will negotiate to modify contract to re-
establish economic equilibrium
• Adoption clauses – Contract provision that calls for host govt to
adopt parties’ agreement as the law
22. The Future of Stabilization
• Increased constitutional democratization (rule of law) in the
governance of countries reduces relevance of stabilization
• Legislative amendments in the sphere of defence, national
security, the environment/environmental safety/ecological
security and public health are excluded from the scope of
stabilisation guarantees.
• Negotiated self-contained and/or stabilised normative
regimes
23. Local content
• Benefits from oil and gas to local economic development
depends on:
– The transfer of technical skills by oil and gas companies
– The extension of the buying power of oil and gas
companies to local businesses
• The main issues
– the role of law versus voluntary initiatives
– Broad provisions in the Petroleum Law and regulations
– Comprehensive local content law to enforce compliance
– Protectionism or competitiveness
– Issues of international standards remain a challenge
24. The Argument for Local Content –
Protectionism versus Competitiveness
• Protectionism: the economic policy of restraining
trade between states, through methods such as
tariffs on imported goods, restrictive quotas
(including Local Content targets), and regulations
designed to discourage imports
• Competitiveness: a comparative concept of the
ability and performance of a firm or country to
sell and supply goods and/or services in a given
market
25. Protectionist Local Content
Regulations
• Infant industries Argument
• Providing breathing-space to catch up – nascent
industries often do not have the economies of scale of
older competitors from other countries, and need to
be protected until they can attain similar economies of
scale.
• Market Power Argument
• Powerful international contractors with global sourcing
arrangements and repeat use of preferred suppliers
may lock-out fully capable and competitive domestic
suppliers
27. Reconciling protectionism and
competitiveness
• Protectionist Preferential Clause
• “Where a Nigerian indigenous company has the capacity to
execute a contract it will not be disqualified for the sole
reason that it is not the lowest financial bidder provided the
value does not exceed the lowest bid price by 10%”.
• Competitive Concession Clause
• “Give preference to local contractors and locally
manufactured materials and equipment so long as their
performance, quality and time of delivery are competitive
with international performance and prices”
• There must be a progressive move from protectionism to
competitiveness
30. Corporate Social Responsibility and
Community Rights
• Governance of companies’ social investment programmes, and
their contributions to skills transfer, community development
and education, are also mandated, in a variety of ways, by oil
and gas contracts.
• The concept of ‘’Social license’’
• The social investment contributions provided for under the
terms of oil and gas contracts may be significant source of
revenue for regional authorities in regions where oil and gas
developments takes place
• The focus
– Common provisions mandate spending on educational and
training efforts
– tax incentives for this kind of spending work are provided
– contain provisions on community relations
31. Future Trends in CSR
• The current debate over CSR to define future trend in
contracts
– Community development is responsibility of Government
and not companies
– Issues of cost recoverability in respect of social and
community investment programmes may deny
Government significant revenues
– National regulations for CSR to ensure compliance with
national policy
– Integration of CSR into local development plans
– Land rights and compensation must follow the principles
of ‘’Free Informed Prior Consent’’