Based on Iran's sixth development plan,the country's oil and gas industry requires an investment of about$200 bn in the next five years to increase production.The Iranian government,to attract and motivate int...Based on Iran's sixth development plan,the country's oil and gas industry requires an investment of about$200 bn in the next five years to increase production.The Iranian government,to attract and motivate international oil company investment in their oil and gas fields,has presented a new type of risk service contract:the Iranian Petroleum Contract(IPC).This paper summarizes the features of the IPC and presents mathematical models of its fiscal regime for the benefit and guidance of both the National Iranian Oil Company(NIOC)and the contractors.Next,adopting bargaining game theory provides a mathematical model for reaching a win-win situation between the NIOC and the contractor.Finally,a numerical example is given and a sensitivity analysis performed to illustrate the implementation of the proposed models.The contractor and the NIOC may use these models when preparing their proposal and in the course of actual negotiations to calculate their internal rate of return,remuneration fee,and net present value for developing the fields at different conditions of their bargaining power,and derive a logical bargain to protect their best possible interests.展开更多
Somaliland declared independence after the fall of the Central Government of Somalia in 1991. Early peace settlements and state-building efforts led to transitional government and early democratic contestations includ...Somaliland declared independence after the fall of the Central Government of Somalia in 1991. Early peace settlements and state-building efforts led to transitional government and early democratic contestations including presidential elections in a hybrid state framework. This emerging democracy in a conflict-torn region is challenged by weak accountability and power imbalances between the three government branches. Over the past few years, the current ruling party started to engage with foreign companies to carry out exploration activities in onshore blocks utilizing existing information on the distribution of natural resources of oil, and gas and to lesser extent mining. Following an informal auction of selling licenses for resource exploration among various companies, Genel Energy amongst others;Somaliland has no competent institutions in managing revenues for long-term development due to two distinctive factors: 1) absence of strong legal and political frameworks specific to governance of extractive industry;2) weak fiscal regimes across spectrum of extractive companies, the state and investors.展开更多
Following three generations of buyback contracts,the new model of Iranian petroleum contracts(IPC) was introduced by the Iranian cabinet to incentivize investments in the country.This paper analyzes the fiscal terms o...Following three generations of buyback contracts,the new model of Iranian petroleum contracts(IPC) was introduced by the Iranian cabinet to incentivize investments in the country.This paper analyzes the fiscal terms of the contract with technical information from one of the candidate fields for licensing.The financial simulation shows that,in general,the IPC resembles more a service contract than a production sharing contract as the contractor's take is relatively low—below 5% across different scenarios of crude oil price.Second,the IPC is progressive in that as the overall profitability of the project improves the government takes an increasing share of the economic rent.The results are confirmed in a sensitivity analysis of each party's profitability and takes on oil price,CAPEX,OPEX and the fee.展开更多
文摘Based on Iran's sixth development plan,the country's oil and gas industry requires an investment of about$200 bn in the next five years to increase production.The Iranian government,to attract and motivate international oil company investment in their oil and gas fields,has presented a new type of risk service contract:the Iranian Petroleum Contract(IPC).This paper summarizes the features of the IPC and presents mathematical models of its fiscal regime for the benefit and guidance of both the National Iranian Oil Company(NIOC)and the contractors.Next,adopting bargaining game theory provides a mathematical model for reaching a win-win situation between the NIOC and the contractor.Finally,a numerical example is given and a sensitivity analysis performed to illustrate the implementation of the proposed models.The contractor and the NIOC may use these models when preparing their proposal and in the course of actual negotiations to calculate their internal rate of return,remuneration fee,and net present value for developing the fields at different conditions of their bargaining power,and derive a logical bargain to protect their best possible interests.
文摘Somaliland declared independence after the fall of the Central Government of Somalia in 1991. Early peace settlements and state-building efforts led to transitional government and early democratic contestations including presidential elections in a hybrid state framework. This emerging democracy in a conflict-torn region is challenged by weak accountability and power imbalances between the three government branches. Over the past few years, the current ruling party started to engage with foreign companies to carry out exploration activities in onshore blocks utilizing existing information on the distribution of natural resources of oil, and gas and to lesser extent mining. Following an informal auction of selling licenses for resource exploration among various companies, Genel Energy amongst others;Somaliland has no competent institutions in managing revenues for long-term development due to two distinctive factors: 1) absence of strong legal and political frameworks specific to governance of extractive industry;2) weak fiscal regimes across spectrum of extractive companies, the state and investors.
文摘Following three generations of buyback contracts,the new model of Iranian petroleum contracts(IPC) was introduced by the Iranian cabinet to incentivize investments in the country.This paper analyzes the fiscal terms of the contract with technical information from one of the candidate fields for licensing.The financial simulation shows that,in general,the IPC resembles more a service contract than a production sharing contract as the contractor's take is relatively low—below 5% across different scenarios of crude oil price.Second,the IPC is progressive in that as the overall profitability of the project improves the government takes an increasing share of the economic rent.The results are confirmed in a sensitivity analysis of each party's profitability and takes on oil price,CAPEX,OPEX and the fee.
