Investigating and Comparing Petroleum Contract Models from Effective Control Lens in Contracts

Abstract

Selecting the suitable petroleum contract pattern is one of the most sensitive in oil activities after the initial petroleum negotiations, whereas different petroleum contracts have emerged due to the willingness of the host government to grant control and oversight of petroleum activity to the International Oil Company. The right to control effectively is the key to earning more and longer-term profit and impact on project economics for each of the parties. Occasionally, this right to effective control creates a major challenge for host countries and international and transnational oil companies. In the meantime, domestic law requirements play an important role along with the willingness of governments to maintain or grant effective control.