International Petroleum Negotiations: Successful Deal Making in International Exploration
Peter M. Kennel, 2000. "International Petroleum Negotiations: Successful Deal Making in International Exploration", International Oil and Gas Ventures: A Business Perspective, George E. Kronman, Don B. Felio, Thomas E. O’Connor, Mindy S. Kronman
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This chapter begins with a summary of the basic types of international petroleum exploration and production agreements. It then discusses those contractual issues likely to be of primary importance to the host government and foreign investor, and describes some of the unique characteristics of international petroleum negotiations. The focus then turns to a discussion of the process of selection and training of international petroleum negotiators, including those skills and traits needed to be effective. The chapter continues with a discussion of some tools, caveats, and other considerations involved in negotiating international petroleum agreements, including the importance of “negotiating” with one’s own management, the location of negotiations, the language used, differences between “relationship” and “legalistic” countries, the problem of corruption in the deal-making process, and finally the use/nonuse of “ploys” in international negotiation. The chapter concludes with observations on some trends in the area of international petroleum agreements.
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A “one-stop” business view on how to succeed in international exploration and production. Success in the international upstream arena requires more than the technical ability to find oil and gas. Relationships with governments and people, mutually beneficial contracts, workable strategies, and implementation plans are necessary to build strong, mutually beneficial, and profitable ventures. Key components that drive exploration and production in the global environment are examined. Specific topics include negotiating for success, contracts, the role of technology in international strategies, cross-cultural relationships, alliances, and international upstream financing. Authors from around the world, representing industry, governments, national oil companies, consultants, and academia, contributed their perspectives. Views are provided from both sides of the negotiating table, the corporate boardroom, the resident manager, the explorationist, the businessman, and the theoretician. Geoscientists, engineers, and negotiators, who are, or would like to be, involved in the global energy business will find this collection an important reference.