Abstract
Earlier chapters have examined project specific risks in the various sectors of the oil and gas industry, particularly risks relating to project development and operation, feedstock supply and product markets. It is, however, often found that the most difficult challenges faced by projects come from the wider political environment within which the project is being developed and operated. Not only can politics seriously interfere with project performance but political risks are also difficult to predict and to plan for. The environmental and social impact of projects can also be a source of considerable risk and there are numerous examples of project viability being seriously threatened by these risks. Tax is a further potential source of general cashflow risk. The tax treatment applied to particular projects or industries can be politically motivated and tax risks are often difficult to manage and mitigate. In addition to these general project risks, this chapter will also examine the insurance aspects of project finance and the role which insurance can play in mitigating these wider project risks.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Project Finance for the International Petroleum Industry
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
