Wildlands Restoration Volunteers

Host Government Agreements

This book provides a comprehensive analysis of stabilization clauses and the internal and external factors that require host countries to engage and will be aimed at practitioners, students and scientists in international investment and energy law. Finally, there are several articles, more general or global, that focus on the host government`s contractual terms, including stabilization clauses and environmental liability, as well as an analysis of different tax systems by Daniel and David Johnston. We hope that you will find this special edition of OGEL interesting not only from an intellectual point of view, but also from a practical point of view, to understand how tax regimes and state aid instruments are evolving in the current context. Host governments continue to balance the need to encourage new and additional international investment, not only to encourage E&P operations, but also to develop stronger internal systems and local industries, in order to strengthen domestic markets and create opportunities for a better trained and more demanding local workforce. With the election of Dilma Rouseff in Brazil on October 31, 2010, she is expected to continue the Labor Party`s efforts to set up a production-sharing regime for massive prelin discoveries before Rio de Janeiro and surrounding states. A new state-controlled unit, commonly known as Petrosal, will be the chairman of each works council before salt and would be an institution dedicated to managing the Brazilian government`s participation in activities before salt and serving as a driving force for social and communal development. This model is similar to Norway`s, but it will have an unprecedented impact on the future social well-being of the Brazilian population. In recent years, the oil and gas industry has seen both a rise in resource nationalism and a significant shift in the sophistication of the host government`s extraction instruments. While recently the flood of resource nationalism appears to have been dampened, with several governments seeking to encourage international investment, including to develop unconventional or difficult reserves, the host government`s share of the profits from these operations continues to rise. Since crude oil prices rose in the summer of 2008, host governments around the world have worked to claim a larger percentage of the profits received in exploration and production (E&P) companies. We believe that the general trend displayed in the various articles presented here is that host Governments are becoming increasingly sophisticated and, although the means and methods they use to generate higher revenues for the host Government may vary, the common issue is similar among virtually all developing countries. For the most part, with the rise in crude oil prices, the level of revenues that remain in a host country and generated by E&P activities is also increasing. In addition, there is another group of host governments, such as Brazil, Indonesia, Venezuela and Mexico, which are introducing new tax regimes and contractual arrangements for the exploitation of hydrocarbons in their countries.

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