North African oil and foreign investment in changing market conditions
We analyse the oil contracts and fiscal terms used by North African countries (Algeria, Libya, Egypt and Sudan) and the evolution of foreign oil companies' involvement in their oil sectors. Although the relationship between foreign oil companies and the governments of North Africa has witnessed...
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Format: | Working paper |
Language: | English |
Published: |
Oxford Institute for Energy Studies
2008
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Summary: | We analyse the oil contracts and fiscal terms used by North African countries (Algeria, Libya, Egypt and Sudan) and the evolution of foreign oil companies' involvement in their oil sectors. Although the relationship between foreign oil companies and the governments of North Africa has witnessed major transformations over the years and has taken different shapes across countries depending on country-specific factors, there are some important similarities with regards to the importance of foreign investment. North African countries' oil sectors are still heavily reliant on foreign oil companies and this reliance is likely to increase further if they are to meet their ambitious expansion plans. The recent rise in oil prices and the limited opportunities available elsewhere meant that foreign oil companies had to deal with more confident and assertive governments that are demanding a higher stake in the oil rent. The effectiveness in which governments and foreign oil companies adjust to this new reality will determine the extent and the pace of the future development of these countries' oil sectors. |
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