Recent years have seen an increase in contract renegotiation and changes to fiscal agreements by petroleum and mineral producing countries. According to industry consultants Wood Mackenzie, 28 countries have changed their fiscal terms, imposed new taxes, altered operation rules, or expropriated producing companies since 2002.
Revenue Watch is reviewing these shifts in policy to assess their impact and implications. Governments that respect their legal obligations, enforce contracts and safeguard private property are promoting a stable business environment and economic growth. However, governments may also have legitimate concerns over profit-sharing in a high-price environment or over how to manage and operate the petroleum sector according to their national interests.
RWI has completed an initial survey of countries that have changed their operating rules for the petroleum sectors, which includes each government's stated objectives for the change methods for managing the process.