Beredjick and Walde - Petroleum Investment Policies in Developing Countries

full all chapter5 chapter6 chapter7 chapter8 chapter9

chapter4 chapter5 chapter6 chapter7 chapter8 chapter9

Transparency and Accountability

Policy, Legal and Contractual Framework

Sector Organization and Institutions

Fiscal Design and Administration

Revenue Management and Distribution

Sustainable Development

Beredjick, N., Wälde, T., eds., Petroleum Investment Policies in Developing Countries, (London: Graham and Trotman Ltd, 1988)

The twelve chapters in this publication cover a wide variety of topics, providing a cohesive treatment of the topic of petroleum investments underscored by the great challenges faced by host governments (especially those in developing countries) and the industry given uncertain petroleum prices, a theme that is often revisited. The authors focus on many issues including; finance, contracts, political risk insurance, legal issues, economics, and technical cooperation.

The introduction by Wälde and Beredjick attempts to offer an overview of the contents. They argue that a ringing theme of the book is the realization that the culmination of fators such as growing legal expertise and the sophistication of economic and financial analysis, the culmination of such factors, thus, should lead to the drafting of legal instruments which offer greater flexibility and “greater adaptive capacity than seen before."

The authors stress the importance of an interdisciplinary approach. One particularly interesting point relates to the impact of technological development as it relates to effectiveness and productivity, but also noting that there are many barriers to persuading various professionals to accept these benefits (especially in the developing country context). They, however, argue that the problem is largely a matter of intergenerational adjustment.

The following chapters, with more of a legal leaning, traces trends in new petroleum legislation, and how the price of petroleum has influenced such trends, coupled with questions host governments now have to contend with including: doing nothing with their natural resources until prices seem more certain; pursuing state enterprise activities with greater vigor; or negotiating contracts that contain adequate incentives for oil companies and that are sufficiently flexible to permit adaptation should the price situation change dramatically. The later examination of issues that need to be addressed when negotiating contracts further sheds light on the need for a host government to balance the needs of both investor and the country in question. Other issues touched upon are boundary delimitation, dispute settlement and the role of the Courts and implications of such disputes for Petroleum concessions and licenses.

This collection of essays offers a multi-disciplinary look at issues relating to petroleum development around the world and is designed to be of interest to governments, companies, and other such stakeholders. The book offers insights into various disciplines that might not be contained in a single volume. References are drawn from a variety of sources from various countries, offering a variety of legislative, jurisdictional and contractual approaches to problem solving. Such a resource proves a very useful comparator and reference point, especially for policy-makers.

This publication includes the chapter by CEPMLP Director Prof. Cameron, P., entitled "The Structure of Petroleum Agreements."  

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