African Natural Resources Agreements: Stabilisation Tricks and Traps for the Unwary

2017 ◽  
Vol 25 (4) ◽  
pp. 579-589
Author(s):  
Richard M. Temple
Keyword(s):  
Natural Resources ◽  
Oil And Gas ◽  
Risk Category ◽  
Global Competition ◽  
African Continent ◽  
Legal Certainty ◽  
World Markets ◽  
The Face ◽  
Host Government

In Africa, legal certainty has been a much craved ideal by investors in the natural resources sector. A key feature of legal certainty in long-term natural resources contracts is to make sure that if new laws are passed or existing laws amended which adversely affect the sponsor, compensation is paid for such changes. When natural resources prices are rising companies are often prepared to take a robust commercial view on the stabilisation risks. It is often seen as falling in the catastrophic risk category but unlikely to occur. However, with the current challenges in oil and gas and commodities in world markets and the global competition for capital, the strength and enforceability of contractual stabilisation covenants in long-term natural resources contracts in Africa in an increasingly risk-adverse world are ever more important. While there is always much debate over the fiscal package in natural resources deals, the stabilisation provisions rarely receive the attention they merit. How to value contractual stabilisation legal protections against more easily quantified fiscal provisions remains an anathema. What is clear is that companies will be well served to devote attention to stabilisation clauses as the temptation for African governments to tweak laws in the face of dwindling revenues can become overwhelming. This article looks at stabilisation issues in African natural resources contracts (in the context of a change of law by a host government) and how best to enhance the chances of a successful and legally binding stabilisation clause drawing on examples from throughout the African continent.

scholarly journals Approaches to Assessing the Strategic Sustainability of High-Risk Offshore Oil and Gas Projects

2020 ◽  
Vol 8 (12) ◽  
pp. 995
Author(s):  
Alexey Cherepovitsyn ◽  
Anna Tsvetkova ◽  
Nadejda Komendantova
Keyword(s):  
Oil And Gas ◽  
Sustainability Assessment ◽  
Methodological Approach ◽  
The Arctic ◽  
Project Management System ◽  
The Face ◽  
Hierarchy Analysis ◽  
Offshore Oil And Gas ◽  
Offshore Oil

In the face of today’s global challenges, oil and gas companies must define long-term priorities and opportunities in implementing complex Arctic offshore projects, taking into account environmental, economic, technological and social aspects. In this regard, ensuring strategic sustainability is the basis for long-term development. The aim of the study is to analyze existing approaches to the concept of “strategic sustainability” of an offshore Arctic oil and gas project and to develop a methodological approach to assessing the strategic sustainability of offshore oil and gas projects. In the theoretical part of the study, the approaches to defining strategic sustainability were reviewed, and their classification was completed, and the most appropriate definition of strategic sustainability for an offshore oil and gas project was chosen. The method of hierarchy analysis was used for strategic sustainability assessment. Specific criteria have been proposed to reflect the technical, geological, investment, social and environmental characteristics important to the offshore oil and gas project. The strategic sustainability of 5 offshore oil and gas projects was analyzed using an expert survey as part of the hierarchy analysis method. Recommendations were made on the development of an offshore project management system to facilitate the emergence of new criteria and improve the quality of the strategic sustainability assessment of offshore projects in the Arctic.

Sonatrach chief plans to shake up the Algerian company

2017 ◽  
Keyword(s):  
Oil And Gas ◽  
The United States ◽  
Energy Prices ◽  
Content Type ◽  
Foreign Companies ◽  
Energy Company ◽  
Energy Politics ◽  
The Face ◽  
October 17

Subject Energy politics in Algeria. Significance The CEO of state-owned energy company Sonatrach, Abdelmoumen Ould Kaddour on October 17 said during an oil and gas conference in London that Algeria would move away from from oil-indexed, long-term contracts and towards more flexible terms. Since he took the helm in March, the head of Sonatrach has called for radical changes in the way the national oil and gas corporation operates, in the face of the fall in global energy prices. Ould Kaddour has made it clear he thinks the corporation is weighed down by bureaucracy and lacks strategic vision. Impacts Foreign companies are likely to welcome Ould Kaddour’s initiative, but will be wary of the political ramifications. Sonatrach’s priority will be to maintain or increase market share against more competition from Russia, Australia and the United States. Ould Kaddour may not have enough time to deliver results; turnover of senior personnel in Sonatrach over the past few years has been rapid.

scholarly journals Abundance of the natural resources as a factor, which destimulates economic growth. Looking for the Dutch disease in Russia

2010 ◽  
Vol 1 (1) ◽  
pp. 43-64
Author(s):  
Kornelia Gierczyńska
Keyword(s):  
Exchange Rate ◽  
Natural Resources ◽  
Real Exchange Rate ◽  
Oil And Gas ◽  
Commodity Prices ◽  
Dutch Disease ◽  
Sustainable Growth ◽  
Oil Price ◽  
Economic Data

In general thinking, countries possessing rich natural resource deposits are blessed, as resource abundance has seemingly positive correlation with the wealth and economic development of a nation. However, experience shows that countries endowed with extreme amounts of natural resources have found themselves in a serious misuse and on a damaging growth path. Extraordinary resource possession is rather an opportunity than a guarantee for better economic performance. The term “Dutch disease” refers to a situation in which new discoveries of natural resources or sharp rises in commodity prices lead to an increase in the equilibrium real exchange rate, thus undermining the competitiveness of the other tradable sectors in the economy. As suggested in the academic literature the Dutch disease is associated ith four main symptoms: a slowdown in manufacturing output, a booming non-tradable sector, an increase in real wages and real exchange rate appreciation. Russia’s oil price dependence and the risk of the Dutch disease are often considered as the main long-term challenges to sustainable growth in the country. In this regard, it is worth studying the available economic data for evidence of these phenomena. Russia’s oil price dependence and the risk of the Dutch disease are often considered as the main long-term challenges to sustainable growth in the country. In this regard, it is worth studying the available economic data for evidence of these phenomena. The main section examines whether in Russia: exports have become more biased towards oil and gas, GDP growth has become more sensitive to oil price fluctuations, the economy is showing symptoms of the Dutch disease.

scholarly journals Energy and the New Constitution

1985 ◽  
Vol 23 (1) ◽  
pp. 101
Author(s):  
Brian W. Semkow
Keyword(s):  
North America ◽  
Natural Resources ◽  
Natural Resource ◽  
Future Development ◽  
Oil And Gas ◽  
British North America ◽  
The Future ◽  
The Face

The Constitution Act, 1982 contains two natural resource provisions which amend the British North America Act. On the face of these provisions, the formal jurisdiction which provinces can exercise over natural resources in general, and over onshore oil and gas in particular, has been substantially bolstered. It is unclear, however, whether these provisions add very much substantively to the powers the provinces possessed (or were exercising) prior to the passing of the Constitution Act, 1982. This paper will analyse the new natural resource provisions to determine how they will affect the jurisdiction provinces will have over the future development of onshore oil and gas, and the revenues to be derived therefrom.

scholarly journals Petroleum Fund Pada Pemerintahan Lokal (Study Kasus Inovasi Kebijakan “Dana Abadi Migas” di Bojonegoro)

2019 ◽  
Vol 16 (1) ◽  
pp. 127-146
Author(s):  
Ahmad Sholikin
Keyword(s):  
Natural Resources ◽  
Oil And Gas ◽  
Gas Production ◽  
Environmental Damage ◽  
Human Welfare ◽  
Oil And Gas Production ◽  
Endowment Fund ◽  
Oil And Gas Resources ◽  
District Government

The Bojonegoro District Government took the initiative to establish the Bojonegoro Petroleum and Natural Gas (Oil and Gas) Endowment Fund. The establishment of this Oil and Gas Endowment Fund aims to ensure the existence of a saving fund for future generations when oil and gas and gas in the region has run out. This idea is in line with the fact that in the long term Bojonegoro will contribute significantly to domestic oil and gas production and also the fact that Bojonegoro has succeeded in alleviating poverty, in one area that was once considered the poorest district in Java. The establishment of the Oil and Gas Endowment Fund is also based on consideration of avoiding the curse of natural resources. Reflecting on the experience of regions rich in natural resources, including oil and gas resources, where the level of human welfare and development is lower than in areas of poor natural resources. The level of social conflict is quite high, environmental damage is quite severe, Dutch desiase, excessive spending (over spending), corruption thrives and more.

scholarly journals La Moselle canalisée et la voie maritime du Saint-Laurent : notes comparatives

2005 ◽  
Vol 11 (23) ◽  
pp. 253-275
Author(s):  
Jean Cermakian
Keyword(s):  
North America ◽  
Natural Resources ◽  
Capital Investment ◽  
Western Europe ◽  
The Other ◽  
Unit Value ◽  
Political Interests ◽  
World Markets ◽  
Economic Regions

This paper is based upon the premise that in order to justify the considerable capital investment required in such projects, the construction of a deep-draught waterway must serve the long-term economic and political interests of the regions and nations concerned. The question then arises as to what role should such a waterway play so that those interests might be furthered. In trying to answer this question, the author suggests three hypotheses, namely that, 1. The new waterway must provide cheap transport for heavy goods of low per-unit value which can only be carried in bulk, 2. It must create or intensify exchange between two or more economic regions on the same continent, and further the international trade of those regions, and 3. It must encourage the development of under-undustrialized regions and the utilization of hitherto inaccessible natural resources. By comparing the infrastructure and the traffic of two such waterways,, one in Western Europe, the canalized Moselle river, the other one in North America, the St. Lawrence Seaway, the author attempts to verify these hypotheses empirically and finds that all three are valid in both situations. It was found that in both cases the chief result of the new waterways has been the increased competitiveness of the regions which they serve vis-à-vis more powerful neighbors in the competition for world markets.

Comparative analysis of the relative attractiveness of the current fiscal terms in the South East Asia region

2021 ◽  
Author(s):  
D. Ooi
Keyword(s):  
East Asia ◽  
Net Present Value ◽  
Oil And Gas ◽  
South East Asia ◽  
Discounted Cash Flow ◽  
Production Sharing ◽  
Relative Attractiveness ◽  
The Face ◽  
Investor Returns ◽  
Host Government

This paper aims to assess the relative competitiveness of the current fiscal terms in South East Asia in the context of changes proposed and implemented across the region. A discounted cash flow (DCF) analysis was carried out based on the generic fiscal terms of Brunei, Indonesia, Malaysia, Thailand, and Vietnam based on an offshore, shallow water development. Where applicable, a comparison will be made against the previous fiscal terms of the country. Analysis will focus on investor returns and from the host government perspective evaluating net present value (NPV), internal rate of return (IRR), and government take. The fiscal terms were also assessed on whether they are progressive or regressive and provide an equitable return to both investors and host governments. Indonesia, Thailand, and Malaysia have seen recent shifts in their fiscal terms with new terms introduced in 2017, 2018, and 2021, respectively. Indonesia saw the introduction of the Gross Split Production Sharing Contract (GS PSC), which based on this analysis does not appear to be an improvement on the previous Cost Recovery Production Sharing Contract (CR PSC). Thailand saw the introduction of a CR PSC which was applied to the two expired offshore, producing, blocks. Based on our analysis, the newly introduced fiscal terms for Malaysia appears to provide a significant improvement to the previous terms and is likely to encourage further investment. Governments and regulators will face greater pressure to provide further incentives and greater flexibility to attract investments in the face of maturing fields, marginal fields, challenging sour gas resources, and capital constraints resulting from and Environmental, Social, and Corporate Governance (ESG) pressures on oil and gas companies.

Challenges, Concerns, and Perspectives for Poland's Energy Transition during Global COVID-19 Pandemic

2020 ◽  
Vol 1 (2) ◽  
pp. 169-173
Author(s):  
Andrzej Lorkowski ◽  
Robert Jeszke
Keyword(s):  
Internal Energy ◽  
Energy Transition ◽  
Energy Transformation ◽  
Modern Times ◽  
Current Discussion ◽  
The Face ◽  
National Governments ◽  
The Eu ◽  
At Home

The whole world is currently struggling with one of the most disastrous pandemics to hit in modern times – Covid-19. Individual national governments, the WHO and worldwide media organisations are appealing for humanity to universally stay at home, to limit contact and to stay safe in the ongoing fight against this unseen threat. Economists are concerned about the devastating effect this will have on the markets and possible outcomes. One of the countries suffering from potential destruction of this situation is Poland. In this article we will explain how difficult internal energy transformation is, considering the long-term crisis associated with the extraction and usage of coal, the European Green Deal and current discussion on increasing the EU 2030 climate ambitions. In the face of an ongoing pandemic, the situation becomes even more challenging with each passing day.

Antiretroviral Treatment-Associated Labia Majora Lipohypertrophy: A Rare Case and Plastic Surgical Treatment Options

2017 ◽  
Vol 2 (1) ◽  
pp. 43
Author(s):  
Akmal Hisham ◽  
Devananthan Ilenghoven ◽  
Wan Syazli Wan Ahmad Kamal ◽  
Salina Ibrahim ◽  
Shah Jumaat Mohd Yussof
Keyword(s):  
Highly Active Antiretroviral Therapy ◽  
Daily Living ◽  
Treatment Options ◽  
Hiv Positive ◽  
Highly Active ◽  
Labia Majora ◽  
The Face ◽  
Central Fat

The emergence of highly active antiretroviral therapy (HAART) has revolutionized the prognosis of HIV-infected patients. However, the extended use of HAART is associated with a disfiguring complication termed lipodystrophy, a disorder of body fat maldistribution causing peripheral fat loss (lipoatrophy) and central fat accumulation (lipohypertrophy). Lipoatrophy commonly affects the face, legs, buttocks and arm, whilst lipohypertrophy frequently favours the abdomen, breast and dorsocervical region. To our knowledge, we present only the second documented case in the literature of a labia majora lipohypertrophy in a HIV-positive patient receiving long-term HAART. The severity of labial abnormality caused significant physical and functional morbidities. Labiaplasty with dermolipectomy of the labia majora and excisional lipectomy of the mons pubis was successfully performed. At a 6-month follow-up, patient had no recurrence with resolution of symptoms and resumption of normal activities of daily living (ADL).

Populist Parties in Lithuania: Curious Case of Party Order and Justice and its Leadership

2019 ◽  
Vol 7 (1) ◽  
pp. 120-137 ◽  
Author(s):  
Mindaugas Jurkynas
Keyword(s):  
Party System ◽  
Leadership Selection ◽  
Political Careers ◽  
New Parties ◽  
Selection Rules ◽  
Electoral Support ◽  
The Face

AbstractThe article discusses conceptualisation of populism, Lithuania’s party system and electoral dynamics and their relation to the sustainability of populist parties. Special attention is given to Party Order and Justice, a former populist and protest party, and its leadership, namely to the issues related to scope and competencies of a leader’s intra-partisan power, leadership selection rules and history, development of leaders’ political careers and their electoral activity. The L ithuanian party system now exhibits moderate fragmentation without centrifugal tendencies. Voter volatility is still relatively high, yet the share of new parties has dropped to zero. The protest and populist parties in Lithuania went into the margins of political establishment. Popularity of the Order and Justice party has long been connected to the formerly impeached president Rolandas Paksas. His long-term leadership in the face of plummeting electoral support and an emphasis on his political martyrdom resulted in poor electoral performances, ensuing internal squabbles and his departure. Party Order and Justice’s internal regulations, however, remained favourable to strong leadership.

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