On oil investment and production: A comparison of production sharing contracts and buyback contracts

Oil risk contracts, business conduct and performance patterns: Data panel analysis

“…Despite the above, the modeling of international E&E contracts, in terms of the game and optimization theory, has been addressed in the works of Al-Attar and Alomair (2005) on contractual alternatives for NOCs with respect to contractor companies; Feng et al (2014) and Ghandi and Lin (2014) make comparisons between destination countries, according to the strategic assets seen by the contractor companies; Jenik (2005) focuses on the fiscal aspect; and Johnston (2003) and Van Groenendaal and Mazraati (2006) use more comprehensive contractual models. All the works mentioned above depart from Laffont basis regarding the objective functions of the governments (welfare with or without taxes) compared to the regulated companies that maximize profit, considering the variables of adverse selection and cost reduction efforts as endogenous, since they are variables that are not observed by the government or regulator (Laffont, 2005).…”

“…According to Grunstein (2010), and Feng et al (2014), the interests that can be observed in the contracts respond, at the very least, to the following:…”

“…Elaborated from the models by Feng et al (2014), as well as by Laffont (2005), the alternative models could be developed as follows. Compare the characteristics of each type of contract, starting with the production-sharing contract (PSC), then presenting the license contract (LC), and then adding the risk-service with Buy-Back Agreement (BBA) to contrast and derive those theoretically preferable.…”

“…The deregulation and opening to the private initiative answers to the need of the governments to share investment risks (Feng, Zang, & Gao, 2014) and, at the same time, strengthen the sector with the transfer of technology, experience and capital of the IOCs contractor companies, whether alone or co-investing with domestic private oil companies or POCs. In recent years, the majority of countries that keep their oil sector nationalized have decreased their production and decelerated exploration, due to the lack of appropriate technology and experience, as well as institutional limitations and policies (Al-Attar & Alomair, op.…”

Integrated Evaluation Method-Based Technical and Economic Factors for International Oil Exploration Projects

“…The evaluation of an international petroleum exploration project involves a wide range of factors, including oil resources characteristics [3,[33][34][35], the investment environment [4][5][6], and contract terms [36][37][38], which are in turn affected by many sub-factors. The determination process for each factor may have certain deviations and poses risks.…”