The International Tax and Investment Center, a nonprofit research and educational organization, has developed a set of principles for hydrocarbon investment policies that experts believe will assist in the dialogue between developing countries and prospective oil and gas exploration and development investors. The Principles for Developing Country Hydrocarbon Investment Policies are designed as a possible framework for collaboration between countries and investors to ensure countries obtain full value for their resources while attracting and sustaining the substantial investments and operational expertise needed for efficient, safe and environmentally sound resource development.
Consistent with ITIC’s mission to bring parties together for dialogue on important fiscal, taxation, and investment policy issues, this set of oil and gas investment principles is an important starting point for countries and investors as they seek to work together in promoting economic development and attracting international investment.
These principles are a product of extensive dialogue among several leading international financial institutions and a number of oil and gas companies with vast international experience. The principles were finalized and adopted by ITIC’s Oil and Gas Taxation and Regulatory Working Group, which will facilitate discussion of the principles with officials in various countries as we as multiple-stakeholder sessions.
The Principles for Developing Country Hydrocarbon Investment Policies can be viewed here.
*Karl Schmalz has over 37 years’ experience working for major international oil companies as a tax executive. He is currently a senior advisor to ITIC.