Petroleum discovery in a country presents policy makers and the nation as a whole with the challenging and complex task of formulating and agreeing on policies that will shape the country's petroleum sector and guide the translation of the new found resources into equitable and sustainable economic and social growth over the long term.
This publication provides the basic sector-related knowledge for policy makers and other stakeholders that they need to embark on this task. It introduces the petroleum value chain and pivotal factors affecting value creation, the consultative process for developing the nation's common vision on key petroleum development objectives, the design of the legislative and contractual framework, petroleum fiscal regimes and their administration, prudent fiscal management, transparency and governance, environmental and social safeguards, and economic diversification through industrial linkages. Although much of the material is relevant to designing policies for the development of the petroleum sector in general, special focus is given to the context of developing countries, countries in a federal or devolved setting, and countries that have experienced or are still experiencing civil conflict. With this focus in mind, the book examines questions of ownership, management, and revenue sharing of petroleum resources that are central to petroleum policy in any federal or devolved state.
The book also offers important perspectives on how to prevent petroleum-related violent conflicts. Petroleum policies tend to vary significantly from country to country, as do the objectives that such policies aim to achieve in the specific context of the country. Although there is no one-size-fits-all policy and no clear-cut answers to all potential policy dilemmas, which are many, this publication may help policy makers find the right balance of objectives and the right policy choices to achieve them.