Sharing the oil rent

ISBN9782710810353 EditorÉditions Technip pages192 Published2014-05-01
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60 years ago, a cartel of oil companies was in a position to dictate its conditions to oil producing States. The creation of OPEC, and the improvements in contracts greatly helped to rebalance the conditions of the sharing of the oil rent. Today, producer States can obtain contractual terms and settings that improve favorably their share of the rent, provided they analyze well their objectives and their strengths.

This book describes the evolution of the oil rent-sharing mechanisms over the years:

- How the upstream exploration-production industry functions and the three types of oil rent.

- It clarifies the issue of reserves, both from the techno-economic and the political aspects.

- The two main contractual forms that a producer State can use when dealing with an international oil company.

- The organizational choices offered to a producer State trying to maximize its underground hydrocarbon potential.

- The historical developments of contractual modalities.

- Some recommendations to States on the pros and cons of various contractual options.

This book will be useful to readers willing to understand the issues linked to the oil-rent sharing as well as to professionals (education, industry) who want to develop and deepen their knowledge of the subject.

This book is available in French Under the title "Le partage de la rente pétrolière".
Gilles Darmois est professeur à IFP Training et consultant indépendant en hydrocarbures. Il a passé une grande partie de sa vie professionnelle dans une major pétrolière française où il a occupé des postes de responsabilité aussi bien opérationnels que fonctionnels.
Dans cette entreprise, il a négocié des contrats de partage de production et géré au quotidien des opérations pétrolières. Dans ses postes fonctionnels, il a participé à des négociations avec des États et contribué à la définition de la stratégie de l'entreprise.

En tant que consultant, il intervient en particulier auprès d'états pétroliers pour aider à la définition de leur politique pétrolière et gazière.
Ses cours à IFP Training portent notamment sur les contrats pétroliers et l'audit gouvernemental.
Il est expert à Terra Nova et tient un blog consacré à l'énergie :

1. The exploration & production industry, oil rent, reserves. 2. The two main types of contracts. 3. Organization for a producer state. 4. From 1980 to 2010. 5. Proposal of best contractual practices, from bidding round to abandonment. Conclusion: enrich the country or its leaders? Exercices with commented answers. Corrected exercises. Bibliography