The Distortionary Effect of Production Sharing Contract in Upstream Petroleum Industry

  • Fazel Moridifarimani

    Student thesis: Doctoral Thesis › Doctor of Philosophy

    Abstract

    There is a vast literature on the distortionary effects of the tax-royalty system, while the effects of Production Sharing Contract (PSC) is largely understudied. Moreover, economic studies typically oversimplify the physics of the field and consequently end up with models which do not necessarily fully reflect the reality. In this study, we build a dynamic optimisation model which nests the physics of the reservoir and investigates the distortionary effects of a PSC.
    Date of Award2018
    Original languageEnglish
    SupervisorXiaoyi Mu (Supervisor) & Eric Mackay (Supervisor)

    Keywords

    • Upstream Petroleum Contracts
    • Production Sharing Contract
    • Distortionary Effects
    • Dynamic Optimization
    • Dynamic Progrmming
    • Material Balance
    • Production Sharing Agreement

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