Tips on dealing with concessions

Author: | Published: 1 Apr 2009

Notwithstanding the recent drastic reversal of oil prices, upstream oil and gas projects remain on the radar of many international oil companies (IOCs) and national oil companies (NOCs) that continue to look for good investment opportunities. However, any upstream investment opportunity warrants careful examination, not least because it will have emerged against the backdrop of a financial tsunami.

More state control or less?

History shows that every period that witnesses a drastic change of oil prices, in either direction, will be followed by a redefinition of the landscape of the oil and gas sector.

Some predict that the bargaining power of host states will be enhanced amidst low oil prices and economic downturn, and the host state-IOC collaboration will go beyond the mere sharing of production. This is illustrated by the recent proposal of the Indonesian government to allow Shell to participate in the Natuna D-Alpha project, conditional upon Shell...


 

 

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