TY - JOUR
T1 - On structuring offshore hydrocarbon production sharing contracts
T2 - Lebanon's case
AU - Yassine, Ali
AU - Maddah, Bacel
AU - Younes, Najat
PY - 2013/6
Y1 - 2013/6
N2 - Interest in the Lebanese offshore hydrocarbon potentials has recently increased, especially after the discoveries in neighbouring countries that share the same geological offshore basin with Lebanon. In this article, we present a framework for structuring and analysing offshore hydrocarbon contracts. Our objective is to assist governments in formulating and managing the contracting process for hydrocarbon assets. The proposed framework is based on a benchmark study (ie database) of offshore production sharing contracts (PSCs). Contract profiling is then performed using three factors: political and economic risk, reserves status and water depth. Based on this database and on contract profiling, we propose plausible ranges for the parameters of potential PSCs; particularly, for Lebanon. We also utilise a simple 'take' model for PSCs to perform sensitivity analysis in order to identify critical contract parameters that have the highest effect on the government share. Additionally, our research statistically tests the significance of the three contract profiling factors on the PSC parameters.
AB - Interest in the Lebanese offshore hydrocarbon potentials has recently increased, especially after the discoveries in neighbouring countries that share the same geological offshore basin with Lebanon. In this article, we present a framework for structuring and analysing offshore hydrocarbon contracts. Our objective is to assist governments in formulating and managing the contracting process for hydrocarbon assets. The proposed framework is based on a benchmark study (ie database) of offshore production sharing contracts (PSCs). Contract profiling is then performed using three factors: political and economic risk, reserves status and water depth. Based on this database and on contract profiling, we propose plausible ranges for the parameters of potential PSCs; particularly, for Lebanon. We also utilise a simple 'take' model for PSCs to perform sensitivity analysis in order to identify critical contract parameters that have the highest effect on the government share. Additionally, our research statistically tests the significance of the three contract profiling factors on the PSC parameters.
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U2 - 10.1093/jwelb/jwt003
DO - 10.1093/jwelb/jwt003
M3 - Article
AN - SCOPUS:84878463625
SN - 1754-9957
VL - 6
SP - 83
EP - 106
JO - Journal of World Energy Law and Business
JF - Journal of World Energy Law and Business
IS - 2
ER -