Topical issues in petroleum tax design are in this chapter discussed by means of a tax model for anet income tax system (Norway) and a representative PSA regime. We analyse the entire lifecycle of a typical petroleum project, i.e., the exploration decision is included. Many petroleumtax systems...

Because of a long time frame, irreversible and specific investments, incomplete contracts andpolitical constraints, it is generally difficult for governments to commit themselves in a credibleway to a fixed petroleum tax regime. Many controversial renegotiations and tightenings of suchsystems...

Theories of irreversible investment suggest a negative relation between investment and uncertainty,and non-linear adjustment costs open for asymmetries in the adjustment of fixed capital. We proposean econometric modelling approach to estimate and test the key predictions of modern...

Shortages of rigs and personnel have encouraged creativity in designing incentive contracts in thedrilling sector. In particular for oil service contracts, since those companies have the most directcontrol of drilling efficiency. A large variety of contract types are in use, including within...

The oil companies are concerned to replace the petroleum reserves they producein order to maintain their future level of activity. Booked reserves alsorepresent an important input when analysts value these companies. Many producercountries want to control their own resources, a goal which can...

How should tax systems be designed to account for the characteristics of the government, the oil companies and the projects in order to maximise welfare for the country's inhabitants? How should vital government characteristics reflected in parameters such as impatience to obtain tax revenue -...

Financial leasing is prevalent in many projects in the oil and energy industries. Examples are tariff payments in existing pipelines, processing tariffs, leasing of rigs and leasing of LNG transportation ships. A common mistake among oil companies in such settings is to treat financial leasing...

Recent trends among major oil companies and independents have been consolidation through mergers and acquisitions and focus on key strategic core areas. The expressed goals have been to achieve synergy, reduce costs, and concentrate on areas with maximum expected value creation. This paper...

Governments in extraction countries are anxious to estimate expected investment in development projects, since they represent an essential element of the macro economy. The overall level of activity is also crucial to oil companies, since the macro picture affects cost levels, the supplies...

Governments in extraction countries are anxious to estimate expected investment in development projects, since they represent an essential element of the macro economy. The overall level of activity is also crucial to oil companies, since the macro picture affects cost levels, the supplies...