Petroleum Exploration and Production Rights

Silvana Tordo

Description

Many governments rely on oil companies to efficiently exploit natural resources. Governments have the challenging task of deciding which companies should be awarded exclusive rights to explore, develop, and produce their petroleum resources, and on what conditions such rights should be awarded. This paper analyzes the available evidence on the advantages and disadvantages of various systems used by petroleum-producing countries to allocate petroleum exploration, development, and production rights, and considers the policy implications of each system. The experience of six petroleum-producing countries is presented in detail, and numerous other examples are provided to derive lessons of wider applicability. The paper presents various conclusions for policy makers about the optimal design of allocation systems.

Sujets

• Hydrocarbon exploration
• Governance
• Industry

Informations

• Publié par: world-bank-publications
• Publié le: 12 janvier 2010
• Nombre de lectures: 78
• EAN13: 9780821381687
• Langue: English

Extrait

WORLD BANK WORKING PAPER NO. 179
Petroleum Exploration
and Production Rights
Allocation Strategies and Design Issues
Silvana Tordo
with David Johnston
and Daniel Johnston
THE WORLD BANKWORLD BANK WORKING PAPER NO. 179
Petroleumxploration
androductionights
Allocationtrategiesndesignssues
Silvanaordo
withavidJohnston
andanielohnston
























WP_179_web_10-29-09.pdf 1WP_179_web_10-29-09.pdf 1 10/29/2009 12:45:01 PM10/29/2009 12:45:01 PMCopyright010
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Contents
Acknowledgments...................................................................................................................vi
Acronymsndbbr eviations..............................................................................................vii
Executiveummary ............................................................................................................. .....ix
1.hexploration,evelopment,nd roductionfe troleumesources.................1
Uncertaintyndisk:eylementsf PetroleumExploration,evelopment,
androducti on............................................................................................................1
Theecisionoxploreor Petroleum Resources.........................................................2
Explorationndntere mporalepletion olicies.......................................................3 dnteren erationalquity ................................................................... 3
Explorationndheaximizationf theesourc eent...............................................4
Whoarriesheisk fxploratio n?..............................................................................5
2.lternativepproachesohe rantingfetroleumxploration,
Development,ndroduction ights............................................................................ 8
Legalegimesoret roleum&P...................................................................................8
Concessions................................................................................................................... .9
Productionharingont racts..................................................................................... 10
Servicegreem ents......................................................................................................10
Fiscalegimesoret roleum&P.................................................................................10
Taxationnstrumentsnd Methods.............................................................................11
Comparisonfeyiscallements ofoncessions,SCs, ndAs...........................12
Thellocationfetroleu mE&Pights ...................................................................... 12
Openoorystems ..................................................................................................... 14
Licensingoun ds.........................................................................................................14
Biddableregotiable actors.....................................................................................17
Someountries’ Experience.........................................................................................20
3.heesignfppropri atellocationystems ............................................................ 29
Allocationystem Objectives ..........................................................................................29
Consistencyithetrole umectorolicy .................................................................. 30
Selectingheostfficient perator..........................................................................31
Keepingompliancenddministrat iveosts Down................................................33
Minimizingistortionary Effects................................................................................35
Addressingarket Deficiencies...................................................................................36
Keyssuesnllocationys temsesign ...................................................................... 38
Openoorystemsricensi ngounds? ................................................................. 38
Auctionsrdministrative Procedures?..................................................................... 38
Whichormfuctionsoreikely oeadoigher ids?.................................39
Arelanningndommitment Important? ...............................................................40
iii
WP_179_web_10-29-09.pdf 3WP_179_web_10-29-09.pdf 3 10/29/2009 12:45:15 PM10/29/2009 12:45:15 PMiv Contents
Whateallyattersorheesign ficensing Rounds?.........................................43
Whatoeshisean nractice? .............................................................................45
4.onclusions ................................................................................................................ ..........48
Whatypefllocationyste msest?...................................................................... 48
WhyooManyystems Lookoimilar? ................................................................ 49
Isystemesign Important?...........................................................................................49
Appendixes.................................................................................................................... ...........50
I.ifeyclefypicalil ndasro ject....................................................................51
II.ainiscaln struments:dvantages ndisadvantages .........................................53
III.orldverage Fiscalerms57
IV.electountri es’xperience ..........................................................................................58
Australia.............................................................................................................................58
Licensing policy............................................................................................................5 8
Licensingisto ry.......................................................................................................... 59
Generalbse rvations....................................................................................................59
Unitedingdom ............................................................................................................... 62
Licensing policy6 2
Licensingisto ry 63
Generalbse rvations64
Unitedtates ................................................................................................................. .....67
Licensing policy............................................................................................................6 7
Licensingisto ry 68
Generalbse rvations69
Brazil........................................................................................................................ ...........73
Licensing policy7 3
Licensingisto ry.......................................................................................................... 74
Generalbse rvations....................................................................................................78
Mexico ........81
Licensing policy8 1
Licensingist