Abstract Fossil energy supply, particularly Oil & Gas, has become a subject of vulnerabilities since first oil shock and especially after experience of high oil prices before credit crunch by the end of 2008. Many analyses have been done on the growing rate of energy consumption and on energy import dependency of many industrialized states like as U.S. & EU countries. Growth on consumption, changes and integration of markets as well as expansion policies within the European Union (EU) influence effectiveness of the approaches and tools to provide EU with secure & sufficient supply of energy. An overview of different approaches and policies taken by western countries shows that two main approaches are used to control and somehow guarantee energy security of supply which are: Market and Institutional (M&I) approach in which Market and Energy Institutes are responsible to regulate the market Regions & Empire (R&E) approach in which consumer and producing countries build up direct or semi-direct relationships to create energy blocks Failure of M&I approaches in different historical events to secure energy supply beside basic changes in shape and positioning of NOCs & IOCs in the market are hints which bring in mind the fact that second approaches could be a better choice for EU in the future and specially in case of Gas & LNG supply which is not yet organized by unified institutes or organizations in the market. Efficiency of this way is closely linked to the efficiency of international relationships with producer countries. Thus it is important to specify positive consequences of R&E approach as well as negative results of failure to use this method on energy security of EU for the next decades In this research ownership situation of European oil and gas companies in main energy blocks (Persian Gulf, Russia, Africa) under current M&I approach is described and then effects of strategic bilateral agreement on future energy security of supply for the EU is discussed .Case study of Iran energy resources is used to demonstrate consequence of a real future option of EU, (particularly to consume future LNG production of Iran). Finally some recommendations are proposed.

Abstract Today, more than ever, governments, companies and consumers are focused on the use of renewable energy. Geothermal energy can often be developed for a life-cycle cost that is competitive with most other (non-renewable and renewable) sources, with fewer environmental impacts. However, the pace of geothermal commercial development is slower than conventional resources. This paper describes the history of global geothermal development, the technologies employed, the factors that are needed for a successful project, and the barriers that must be overcome to enable development. The primary conclusions are that geothermal resources can most easily be developed by companies that have an understanding of the complexities associated with underground resource management, and the technology required to manage projects over long periods of time. Equally important is access to adequate capital and the ability to operate in a safe and environmentally responsible manner. Political and regulatory support are also important, as is the ability of the developer to develop and nurture the long term relationships with host governments and local stakeholders that are needed for success. The recent development of markets for carbon credits has allowed developers to benefit from geothermal energy's low emissions, which can significantly reduce the price of geothermal energy. However, political and regulatory uncertainty have diminished the likelihood that this value will be received.

Abstract National Oil Companies have developed into formidable, global competitors to the traditional International Oil Companies. Fuelled by globalization, economical growth, strategic positioning and strong government support, NOC's are expanding rapidly. The session will introduce two speakers representing an lac and NOC respectively, who will discuss their vision of future interactions between these different models.

ABSTRACT Undoubtedly, the energy sector and particularly oil and gas plays a crucial and vital role in the economic world. Contracts are one of the most important instruments for the energy sector, which provides legal order and clears rights and obligations of the parties to prevent any probable disputes. Natural disasters such as earthquake, floods, natural fires etc, are acts of God which cause losses of life, equipment and profits, and make parties fail to perform their obligations. The most sensitive area where this problem arises is with respect to the responsibilities, obligations and profits of the parties in those international contracts which are concluded between profit owners, even in different countries. Although they would try to precisely predict all the reasonable events, still some unpredictable events may happen which will certainly change the order of the contracts of the projects and cause some problems in the relationship between them. This paper attempts to find an appropriate approach to the problem by means of diagnosing the constraints and contributing factors. Therefore, it will explore the factors which affect the performance of such contracts. To achieve the above mentioned goals the present study first attempts to state the characteristics, conditions and legal impacts of such events in Iranian, English and French laws and will explore topics such as ForceMajeur. Moreover it will look at the subject in some judicial and arbitral judgments, and will study the related clauses in some of the contracts in the energy sector. Analysis of the topic will show that such events are recognized in the laws and the parties can consider some good and clear clauses in the contracts to prevent any problem. Thus, this paper will pave the way for other researchers for future studies.

Abstract: With 152 national member bodies and a collection of over 14 900 International Standards, ISO is the leading international standardization organization. These standards cover a broad spectrum of technical issues, industrial sectors and management practices, as well as conformity assessment practices and recognition. Many are of interest to the petroleum and natural gas industries, for their own use and for their relations with their suppliers, stakeholders and society at large. ISO provides this sector with a value adding and widely recognized system for the development of International Standards, with an already extensive portfolio of standards to support the three dimensions of sustainable development, i.e. economic, environmental and social: Economic dimension. ISO and the oil and gas sector have collaborated to produce more than 100 International Standards that, by replacing industrial and national standards and company specifications, reduce costs and delivery time, facilitate procurement and crossborder trade, whilst disseminating technology and good practices. Environmental dimension. ISO offers a complete package comprising the ISO 14000 family for environmental management, standards for measuring and reducing pollution, environmental considerations for product design and labelling, as well as for the validation and verification of greenhouse gas emissions. Social dimension. ISO standards address many aspects of health and safety and these will soon be complemented by guidelines on social responsibility. The world is flat, after all… After all, "the world is flat", to quote the title of the current bestseller by Thomas Friedman, the three times winner of the Pulitzer prize and foreign affairs columnist at the New York Times. His thesis reviews ten "flattening" factors in the past decade, from the fall of the Berlin wall to Google, from the global collaboration to overcome the Y2K bug to outsourcing in the global village and the revolution of the global supply chain. At the inception of this 21 st century, with this levelling of the playing field, International Standards of the type produced by ISO, based on a double level consensus - between nations and across stakeholders - are, more than ever, in demand, and in production, for a broad range of economic activities. The main drivers are: the globalization of trade in products and services the delocalization of procurement and investment the deregulation of public services the public demand for consumer, health and environmental protection the need for international solidarity to face security issues, epidemics or natural threats and disasters the rapid deployment of new information and communication technologies. A new political context driving the development of International Standards The political context in which International Standards are developed has evolved drastically: The World Trade Organization has grown its membership to 148 countries. Its Agreement on Technical Barriers to Trade commits its signatories to make reference to International Standards in order to avoid creating unnecessary obstacles to trade through technical regulations, which set requirements on products and equipments and on conformity assessment procedures,

ABSTRACT The natural gas is an energy in full expansion. Most experts believe demand for LNG will grow faster than demand for any other source of energy over the three coming decades. The world of LNG is changing rapidly. There are new markets, new supply sources, and new players. LNG trading was thus based on long term contracts. Takeor- pay commitments brought security to projects. Currently, one is in impossibility to develop a new LNG chain without basing it on long term. Algeria is the world's second - largest LNG exporting country. Its experience in natural gas liquefaction is 40 years. Sonatrach, Algeria's national company, aims to export 85 billion cubic meters of gas by 2010, to cater for the anticipated growth in worldwide demand. In order to achieve this new export target, the Sonatrach group has set about realising an ambitious programme to develop its exports infrastructures (direct lines to Spain and Italy, and new liquefaction plant). The new liquefaction plant that will be part of an integrated upstream-downstream project to be developed in partnership. This project involves developing the fields in the Gassi Touil area, transporting gas, building a new liquefaction train to handle 4 to 5 million tons a year, and selling the LNG it produces. Obviously, Europe will remain Sonatrach's main market, because of its geographical proximity, however, Sonatrach is making diversification, especially geographical diversification, an integral part of its marketing strategy. The purpose of this paper is to discuss: The role that LNG might play in the future world gas market; The pioneering role Algeria is playing in the development of LNG industry and the global LNG trade; The central position Algeria will play in the new international LNG scene. INTRODUCTION The natural gas is an energy in full expansion. During the last three decades, the worldwide market of the natural gas has than doubled. Natural gas will continue to be the most desirable of the hydrocarbon fuels, especially for new power generation. Experts unanimously agree that, for the next two decades, global energy consumption will significantly increase; and that of natural gas will increase more than any other kind of energy. With the increased demand of natural gas, liquefied natural gas (LNG) is emerging as an important source of natural gas and getting a second look as a fuel option in the United State, Europe, Asia and South America. The gas industry is undergoing far-reaching changes today. Originally, LNG only supplemented pipelined gas deliveries on an as-needed basis. Today it is opening up regional markets. And it is becoming an arbitration issue in those markets. LNG production will gain momentum because of increased capacity of both liquefaction units and LNG tankers, and opening up and extension of new maritime gas routes. Liquefaction units and LNG terminals are developing to benefit from the new access to gas fields.

Abstract: An M.O.U between SONATRACH and NNPC was signed in 2003 to carry out a feasibility study of a Gas pipeline between Nigeria and Europe, passing through Niger and Algeria. This important project, registered in the NEPAD program, has both a Trans-African and Trans-Mediterranean nature. Its implementation will constitute the example of the South- South co-operation and will contribute to the consolidation of the co-operation between the South and the North in the energy field. The TSGP, as any cross - border pipeline, is distinguished by complex aspects linked : To its international statute that has implications on the scheme of: geopolitics geostrategy relationship and international law... To the number of the States concerned by the project with implications with respect to the legal and regulations framework of each country (system ownership, taxation, authorizations and permits, right of way...). To the number and capacity of the partners with implications on the scheme : To technical, economical, financial (market, costs...) and political (regulation...) risks level. The optimal implementation of the project in reasonable times and costs often encounter major constraints. This require from actors will and perseverance to find alternatives which satisfies both internal conditions to the project (technical, economic, commercial, financial...) and external ones (political, legal and tax environment). Our presentation, based on our experience on cross border pipeline projects, will highlight the great challenges raised in the implementation process of such project and will post the overall alternatives of its arrangement through a methodological approach. INTRODUCTION All the specialized sources dealing with the energetic matters strongly believe that the natural gas presents an economic and strategical stake in long term with regards to the large expected demand. Europe is witnessing a spectacular development of its gas industry, all the estimations related to its future evolution in terms of forecast emphasise on its strong gas dependence that will be more than 60% by 2015-2020. This very strong appeal of the importation sources would not be limited only to current suppliers and routes. The deficit would be filled only by the development of new gas reserves of the traditional suppliers and by the recourse to new remoted sources notably from those situated in the Middle East, Caspian, Nigeria… Concerning the Nigerian gas, in addition to the extension of the liquefaction unit of Bonny that will bring the capacity of this first complex of Nigerian LNG to 21.8 BCM per year from 2005, it is foreseen in the framework of long term perspectives to built three others LNG units with a global capacity of more than 25 BCM per year by 2008. If the three feasibility studies are favourable, almost all the LNG produced will be intended for the American market. The other project of a bigger importance, the gas pipeline from Nigeria to Europe through Algeria, the Trans-Saharan Gas Pipeline TSGP, will be on the other hand fully dedicated to the European union market.

"TIME TO ACCELERATE" Plenary Session 4 The Challenge of Achieving International Consensus on Social Responsibility in an International Market Economy "TIME TO ACCELERATE" Jaqueline Aloisi de Larderel, Director Division of Technology, Industry and Economics, United Nations Environment Program Summary (The following summary is based on the visual aids · 86% of the world GDP, used by Mrs Larderel. A transcription of her actual the bottom fifth, just 1% words appears at the end of this report.) · 82% of the world export markets, Mrs de Larderel opened her presentation by the bottom fifth, just 1% introducing her organisation and explaining why she · 68% of Foreign Direct Investment, had chosen the title "Time to Accelerate", rather than the bottom fifth, just 1% "Time to Act". She had observed moves in the · 74% of the world telephone lines Petroleum Community in line with the objectives of the bottom fifth, just 1.5% her department. Now is the time to build on these beginnings and for all companies to be involved. Mrs de Larderel also drew her listeners' attention to the Major environmental challenges The trends in Development worldwide were which face us all in the 21st. Century: shown in the level of Foreign Direct Investment, · Climate Change and atmospheric pollution $400 billion in 1997, seven times that in the 1970s. · Shortage of fresh water The growth in technology innovation to form the · Depletion of biological resources "New Economy" was the second trend, inclusive of · IT, Biotechnology and the new energy technologies Land degradation which are reported in this Congress. The third trend · Environmental emergencies was the growth in worldwide trade. Exports and · The problem of awareness raising and imports in the 1990s amounted to $7 trillion, education averaging 21% of GDP, compared to only 17% of a much lower base GDP in the 1970s. She illustrated the first of these with a table showing the trend in insured losses due to weather Disparities in the benefits are still as great and flooding disasters between 1950 and 1999. as ever; in the late 1990s, the 1/5th. of the world (Figure 1). population living in the highest income countries had: 88 "TIME TO ACCELERATE" Great Weather/Flood Casualties 1950-1999 Ratio Ratio DECADE 1950-1959 1960-1969 1970-1979 1980-1989 1990-1999 80s:60s 90s:60s Number 14 16 29 44 70 2.8 4.4 Economic Loss 38.7 50.8 74.5 118.5 399.9 2.3 7.9 Insured Loss - 6.7 10.8 21.5 86.0 3.2 12.7 Losses in US﹩ Billion -1999 values Figure 1, Natural Catastrophes, trends and Climate Change precautionary approach in their decision making. The root causes of the Environmental degradation, The private sector should also build partnerships she said, were: with governments and NGOs and report their activities with accountability and transparency, Poverty within a new system of corporate governance for the Inequalities equitable sharing of benefits between all Unsustainable production and consumption patterns stakeholders. S

Abstract. Canadian Occidental Petroleum Ltd. (CanadianOxy) has a 52 per cent interest in the Masila Block in Yemen, which currently produces approximately 200,000 barrels of oil per day. Collaborative partnerships with the Yemen government and communities have characterized the Yemen Masila operations since the Production Sharing Agreement (PSA) was signed in 1987 and the Joint Operating Agreement (JOA) was signed in 1991. The latter agreement spells out the collaborative approach taken by the private sector partners and the Yemen Ministry of Oil and Mineral Resources in all operational decision making. For example, a Community Affairs Program (CAP) began with the construction phase of the Masila project and all stakeholders must agree to activities and funding before implementation. CAP projects focus on providing basic assistance to local communities such as clean drinking water, education, sanitation and power systems as well as affordable health care. CanadianOxy has also developed an on-the-job technical program to train highpotential Yemeni students for full-time employment in a number of fields. The program has been highly successful in "Yemenizing" CanadianOxy's operations at technical, supervisory and managerial levels. The company also partnered with environmental experts in Yemen to develop an Environmental Impact Assessment for the Masila project with ongoing environmental monitoring programs. CanadianOxy plans to continue drawing upon its successful partnerships with key stakeholders to develop further growth opportunities in Yemen. poses a considerable challenge to people and INTRODUCTION operations in the Hadhramout. Canadian Occidental Petroleum Ltd. (CanadianOxy) signed a Production Sharing The Masila Block comprises 1,150 square Agreement in 1987 with the Yemen kilometres and is about the size of the city of government to explore and develop oil on the Calgary. The block currently produces over Masila Block. As part of this agreement, 210,000 barrels of oil per day - the largest oil CanadianOxy has established several working producing project in Yemen. With a 52 per partnerships to ensure the project has cent working interest, CanadianOxy operates substantive, long-term benefits for all key the Masila Block and project partners are stakeholders. The success of this partnership Occidental Peninsula Inc. (38% interest) and is a testament to the shared optimism and co- Consolidated Contractors Company (10% operation between CanadianOxy, the interest). Masila represented the first major Government of Yemen and the Masila development

Abstract. Traditional geopolitical and energy issues have given way to environmental issues and to the technology needs imposed by new and marginal plays. Today, the major risk component carried by new ventures can affect the net present value of an investment more significantly than discounts behaviour. The normal rationale of high tech ventures is based on profitability and capital investment, the drive behind emerging countries' net monetary return. Traditional co-operation agreements often penalise the financial objectives and growth of the technological party, while generating the needed cash flows for the developing party. Within the Upstream and in the presence of strong competition, mutually balanced relationships are difficult to implement. The visible effect is a reduction of exploration and development investment in favour of increased production at the expense of reservoir life. Outdated agreement formulas are replaceable by adapting modern productivity partners' cycles to both evolving and static realities. This would benefit economic and societal growth, and on a larger scale, social stability. The tailoring of productivity agreements to domestic growth objectives, through modern capital management measures, is a feasible task for joint ventures and alliances. This can be achieved by renewing technology agreements, establishing mutual growth objectives, and adding transparency, all without renouncing profitability. prices, negatively affecting all economies. INTRODUCTION Emerging economies at an advanced stage of development are harmed by the steep price Over the last few years, under the fluctuation like western economies. At the influence of market liberalising policies, the same time, underdeveloped countries will see supply of oil continued to grow well beyond import substitution costs soaring precluding or official forecasts. This, coupled with delaying smooth development. static/lower consumption by emerging This situation will further contribute to the economies, and a decreasing trend of income slowing of the global economy, already energy intensity for developed countries, reacting to the recent crisis and changes. All resulted in the depression of the oil market. these factors coupled to growing demand and International agreements on production unstable high energy pricing may fuel a new restraint created a steep price fluctuation inflationary recession. upwards, sustained now by higher energy The Upstream Industry, which gained intensity investments - less efficient energy use considerable flexibility in recent years through - operated during the oil market depression reorganisation, can contribute positively to period (cheaper sources). Figure 1 shows GDP avoiding a conflictual situation, while growth and energy intensity trend in recent defending th

Abstract. Paper is focused on the transformation process in the context of globalization inside the oil industry. The authors demonstrated that in the course of the transformation of this sector the State (represented by both legal and executive powers) was anxious to protect an important budget and system creating role of this sector in the economy of the country, on the one hand, and had to "compensate" the reduction of the financial and economic potential of the sector by expanding of forms and opportunities of direct integration of economic units of this industry into the system of global links and relations. As it is showed by the authors, there is an indissoluble link between transformation and globalization processes inside the oil industry, and, furthermore, the globalization of the oil industry is a requirement of the survival and maintenance of its higher industrial and economic potential. · Significant disconnection and atomism of organizations of the sector between INTRODUCTION different ministries; · Dramatically falling economic efficiency The oil industry rather clearly demonstrates the of the sector, mainly, the drop of the oil impact made on its development in 1980-1990 production (especially due to the change by the transformation and globalization of characteristics of the basic constituent processes (i.e. modifications of the basic of the assets of the sector, i.e. hydrocarbon institutes, such as property forms, norms and reserves, because of the worsening of their rules regulating the behavior of basic actors, composition and the quality of and, finally, forms of interaction of these hydrocarbon reserves involved into actors and the organizational structure). This development). sector plays a specific role in the economy of Russia, not only due to the particular Three mentioned features of the oil and gas importance of energy resources but also due to sector predetermined (and continue to the significance to budgets of all levels (from influence on so far) the directions of its national budgets to budgets of separate transformation and their close links with municipalities and economic entities). An globalization processes. important role of the oil industry has also determined very specific features of the Over all these years of reforms the State based transformation and globalization processes its economic policy on the fact that the oil ongoing inside it. industry is one of the major sources of revenues for different budgets. However, due 1 Horizontal globalization and partial to the disconnection of different ministries and transformation as ways of exit the deterioration of oil production conditions, from

INTRODUCTION changes in participation of the Joint Venture partners after transfer. On July 1st 1998 Total Exploration and In practice, the first gas delivery having Production Thailand (Total) transferred the been made on July 15th 1993, notice of intent Operatorship of the Bongkot Field to PTT was given by PTTEP on July 15th 1996 and Exploration and Production (PTTEP), the E&P the transfer successfully achieved on July 1st affiliate of the Thai National Oil & Gas 1998 in accordance with the POA dispositions. Company (PTT). This concluded a very aggressive A TRANSFER MANAGED AS A development program, which brought up PROJECT Bongkot Field production from 150 MMSCFD in September 1993 to 550 MMSCFD in July From the beginning, it was decided that 1998 after 3 successive phases of accelerated the transfer would be managed as a joint development. project between Total and PTTEP. To this effect, This marked also the successful 1. a common project organisation managed completion of a very original process by a Joint Steering Committee was set up involving the initial and the current operator in in 1993 a true "Operatorship Transfer Project (OTP)", 2. joint working groups were established to initiated as soon as the Participation and propose action plans in the various areas Operating Agreement (POA) was signed back of activity; in 1990 and culminating with the transfer 3. a Transfer Project Manager was appointed ceremony on July 1st 1998. by Total with a Deputy Transfer Project Manager appointed by PTTEP; The originality of the process arises from: 4. a Master Plan was drafted to set up the · the acceptance of the transfer option in the detailed of the project organisation and to POA, propose common OTP objectives; · its management as a project, with a 5. key principles governing the transfer were specific organisation and a detailed agreed very early in the project and planning, published as part of the Master Plan. · the emphasis put on human resources development, After PTTEP had notified in 1996 its · the establishment of relationship of mutual intention to exercise the contractual option to trust, confidence and respect between the become operator, the project organisation was initial and the future operator modified slightly to allow an improved monitoring of activities: an OTP sub committee was created within THE TRANSFER OPTION the Joint Venture to ensure a proper information and involvement of the other partners. The Participation and Operating 2. the Joint Steering Committee was replaced Agreement signed between Bongkot Joint by a PTTEP / Total Joint Management Venture partners at the time PTTEP(40%), Committee meeting more frequently Total (30%), British Gas (20%) and Statoil 3. a detailed action plan was then pub

Abstratct Under the centralized Soviet economy, all the subsoil resources have been developed by state owned enterprises and all the products and profits belonged to the State. The basis for the then industrial mechanism operating within the economic system has been centralized economic planning while the system itself can be characterized as administrative command system. All the enterprises have been governed from a single centre (Gosplan) and no partnership in the relations between the centre and executive enterprises could ever be possible. The market economy has made it possible to develop Russian oil fields by enterprises that can be attributed either to big oil producing companies created on the basis of privatization (stockholding) of former state owned oil producing associations or to newly incorporated medium and small oil producing companies - joint stock communities with this or that form of their property: state participation, no state participation, Russian capital only, mixed Russian and foreign capital investment (joint ventures), foreign investment only, etc Interrelations of subsoil developing Russian participant has had no right to do. The companies with the government (subsoil imported equipment and materials have been owner) in Russia are regulated by the subsoil exempt from customs duties. Nevertheless, law, adopted in 1992, and by the subsoil JVs in Russia have not received due lisencing system governed by this law. development. By the middle of 1999, JVs' While executing licenses, monthly oil production amounts to interrelations of the government and the approximately 18 MMT (million tons) or about licensee, partnership relations with the local 7% of total Russia's production. Basically, administration, population, with land using these are small oil producers. The biggest of organizations, with ecological supervision them are OOO JV Vanyeganeft (annual organizations etc. are discussed in every detail. production ~ 2,8 MMT, investors - US Cos.), When organizing a JSC - oil OOO Watoil (2,9 MMT, inv.- German Cos.), producing company, its stockholding ZAO LUKOIL-AIK (1,8 MMT, inv. - US, incorporators can, in this or that way, take part Israeli Cos.), ZAO Nobel Oil (1,4 MMT, inv. in oil field development processes with their - Swiss Cos.), JV OOO Polar Lights Co. (2 production facilities or act as shareholding MMT, inv. - US Cos.). The foreign investors investors. In the course of oil field do not like the frequently changing and development and construction, the said unpredictable tax policy in Russia that does incorporators enter into these or those not allow to forecast, with confidence, JVs' partnership relations which are detailed in a economics for long periods. special document - a coproduction agreement.

Abstract. Kuwait Oil Company has engaged in a Technical Services Agreement (TSA) with BP for the last 8 years. This paper reviews the process of technology transfer through the TSA, the successes, failures, and future challenges. Finally, what are the lessons learned from the TSA and how can they benefit both companies in the future. INTRODUCTION TECHNOLOGY After the Kuwait liberation from Iraq, leading It is important before going over KOC companies from around the world were brought to experience in technology transfer with BP to bear on the task of putting out the well fires and define technology. Technology in this recommissioning the fields. This effort showed the experience was classified into two categories; power of leading edge technology and innovation, as the fires were brought under control faster than 1.1 Hard Technology anyone thought they could be, and production brought Including knowledge of specific back in just 4 months. This exhibition of technology equipment, hardware, software, and methods of lead Kuwait Oil Company (KOC) to embark on a reservoir management. This includes broader based effort to increase the use of leading technologies as water shut off, facilities edge technology within the company. modification, etc.. To achieve this, KOC made several Technical Service 1.2 Soft Technology Agreements (TSAs) with the international oil This covers the areas such as processes, companies (IOCs). The first TSA with BP was signed knowledge management, training ... etc. during late 1992. Two more TSA's were signed with Chevron and Total in 1994 and 1997 respectively. KOC also engaged in two joint studies with Exxon TECHNOLOGY TRANSFER and Shell. KOC's aim in each of these ventures was "Technology transfer is the process by to gain specific technologies needed to achieve its which an IOC's knowledge and capabilities are vision, and to ensure that these technologies were incorporated into the ongoing KOC operations fully captured in their organization. through the terms and conditions of the TSA." Through these ventures, KOC has gained experience "Technology transfer" includes a range of over a period of 8 years across a range of agreements. formal and informal cooperation between the The BP TSA, however, has been the largest in terms IOCs and KOC. In addition, technology of sheer numbers, and covering the broadest spectrum transfer involves the transfer of knowledge and of involvement in the company. It is also the longest technical know-how as well as physical devices running, and been re-negotiated twice. and equipment. The goal of this paper is to bring some examples of It must be understood at the outset that how technology transfer worked w

Abstract. Political and economic security of the host countries is a key argument for foreign financier. Investor companies are expected to evaluate economic profits of each project and make sure of their benefits. Moreover, they try to secure their assets. In this paper I intend to perform an analysis of some leading oil and gas projects in Iran, comparing them to similar cases in the region and to assess the political, economic and legal environment of the country for implementing the energy projects. For this reason, it is attempted to recount advantages of choosing Iran as a location for foreign investments in the oil and gas sector, and to review the legal framework, economic advantages and political support in Iran for attraction and protection of foreign investment. INTRODUCTION and gas in Persian Gulf and Central Asia. After the collapse of the Soviet Union, Iran's We can find impacts of oil and gas in the geopolitical and economic importance has most economic, political and even historical become even more significant. and social events, during the past century. So Iran is OPEC's second largest oil producer the recognition of regions or countries that and holds 90 billion barrels of proven oil have these types of energy is very important. reserves (or roughly 9% of the world's On the other hand, extraction and utilization of reserves). Furthermore, in October 1999, Iran these energies requires investment. Therefore announced that it had found its biggest oil finding the companies, institutions and discovery in 30 years, a giant onshore field countries having capital is another important called Azadegan located in the province of issue. Khuzestan. The field could contain 26 billion Presence of effective factors in the host barrels of oil. countries for attraction of international capital Iran has proven gas reserves close to 862 constitutes one side of the coin, while the trillion cubic feet, about 16% of the world and perceptions on policies of relevant commercial 50% of the Middle East. It should be and political institution at home countries is mentioned that South Pars gas field, which is the other side of it. the largest independent natural gas reserve in In the paper, I examined investment in the the world is situated on the common border of oil & gas industry in Iran. For doing so, in the Iran and Qatar at the Persian Gulf. It may be first section, brief information of the country - fair to say that Iran is now focusing her especially from the oil and gas reserves point attention on production of natural gas to meet of view- are introduced. Then, positive the growing domestic demand and to enter features of Iran as an advantageous and international markets. South Pars

It's a pleasure to return to China and Beijing and an honor to address the World Petroleum Congress. It's entirely fitting that we meet in this seat of ancient civilization and source of world culture. For centuries, people from far parts of the Earth have come to China seeking commercial and other opportunities. The Romans came here seeking silk-traveling along a network of trails that became known as the Silk Road. In the 13th century, history's most famous traveling salesman, Marco Polo, took this road to Cathay, returning to Venice with treasures and tales that astonished all of Europe. More than a century ago, William Herbert Libby, representing Jersey Standard the predecessor to Exxon, came here to persuade Chinese families to try Esso kerosene in their lamps and cooking stoves. The odorless oil and its clear white light proved an instant success, and by 1910 China had become Esso's largest customer in the Far East. To build sales, Libby gave away small, inexpensive kerosene lamps that became widely popular. The company was known by the name ‘Keepers of Light.’ Today, Exxon and the world petroleum industry are still ‘Keepers of Light.’ We earn that title by providing energy to light the way to economic progress, higher standards of living and hope for a brighter future for people around the world. Nowhere is that progress more evident than in the Asia-Pacific region. I've traveled to this part of the world often in recent years, and I'm constantly impressed by the commitment to economic growth that's prevalent throughout the region. All across this region-from Bangkok to Beijing, Jakarta to Shanghai, Singapore to Seoul-the signs of growth are unmistakable. Homes, apartments and office buildings going up. Factories, refineries and power plants under construction. More cars, trains and airplanes on the move than ever before. In 15 years, this region's economy should almost double, shifting the global economic center of gravity toward the East. The people of this region, representing some 40% of the world's population, have a lot to smile about: new and better-paying jobs, more and better consumer goods and services, and greater opportunities for the next generation. Their smiles and looks of hope and optimism are the human face on the economic transformation that's gaining force in Asia. I know all of us here today want to see this transformation continue. But we have to remember that progress is not automatic. As recent economic difficulties in the region demonstrate, there is no guarantee when it comes to economic growth. In fact, some argue that the easy growth from increasing capital and labor inputs has already occurred. They say that the road ahead will be more difîicult and will require strong boosts in productivity to keep Asian economies growing. I see no reason why economic

Abstract. When looking at the supply of emerging or growing oil markets, the oil industry will aim to minimise the cost of supply and also try to contain business risk. Ideally this is done through optimisation of existing manufacturing and supply sources in combination with the construction of large (expandable) import terminals to provide for the local market needs. In order to develop specific parts of the country and create high level employment opportunities, the national governments would often like to see domestic refineries at specific sites even if this would bring about significant cost disadvantages. Landlocked refineries will normally face residue disposal problems and hence are forced to high conversion and hence high capital intensity. Significant synergy could be obtained from refinery/power plant integration. In such cases investment allowances, special taxation conditions, price protection via import duties, preferential marketing rights are ways to match the interests of the country and the Oil Industry. 0 Refinery Product quality 0 Faster demand growth lags constraints construction 0 I I 1 I I t 1. INTRODUCTION Due to the globalization of the oil refining business, oil refining margins are under continuous pressure and require special profit enhancing factors in order to achieve a reasonable rate of return on refinery investment. As shown in Fig. 1 significant volatility in the margin is caused by upward and downward forces. Looking into the future, the key forces are: demand growth, inter regional arbitrage, competition/excess capacity, technological progress, tariffs and trade barriers and product quality constraints. Apart from flat margins there are many aspects making the oil markets less profitable, such as tougher environmental legislation and deregulation in many areas. These factors make new refineries very difficult to justify, especially in regions with significant cost disadvantages (inland facilities and developing non-populous areas). Hence the objective Fig. 1. Upward and downward forces on complex refining margins. Proceedings of the 15th World Petroleum Congress 0 1998 The Executive Board of the World Petroleum Congress Published by John Wiley & Sons 145 146 SUPPLY AND DEMAND c2111 of meeting a reasonable level of return on capital for the new greenfield site becomes almost unattainable. The steadily growing demand for oil products in several geographic areas, particularly in developing countries with significant GDP growth, can create the opportunity for a partnership

Abstract. An Integrated Engineering Service (IES) Contract covering drilling and completion services was formed to develop two sixteen well platforms for Phillips China Inc. (PCI) in the South China Sea. The purpose of the contract was to improve well quality and to reduce the cost and development time to PCI by taking advantage of existing service company/lead contractor infrastructure in the area. Through a cooperative team environment, a cycle of continuous improvement has resulted in dramatically reduced drilling/completion times, improved production, and a much lower development cost to the operator. This paper views the IES relationship from both the perspective of the operator and the lead contractor and its subcontractors. It reviews in detail: the project history and background (including why an IES Contract was the right fit in this case) the ‘Team Xijiang’ structure, roles and responsibilities, and decision making process the pricing mechanisms and how interests are aligned through incentive pricing the continuous improvement cycle and the actual results of the project This new business relationship has laid important groundwork for future opportunities in the industry, for both the operator and lead contractor. An atmosphere of cooperation and trust has removed many of the barriers that exist in a traditional buyer/supplier relationship. By empowering team members to make decisions at the lowest possible level, personnel from all organizations involved are encouraged to contribute freely to the overall success of the project. The industry is continually faced with the need to improve efficiencies through unique solutions to problems. For any given circumstance, there are numerous alternatives to meet the need. In this case, employing an integrated approach via one lead contractor, has been a great success. INTRODUCTION In September, 1996, the primary drilling and completion operations for the original Xijiang oilfield development in the South China Sea were completed. The work was done significantly under the original budget, ahead of schedule, and without a lost time accident during the last 23 months of operations. Twenty-six wells were directionally drilled and completed in 652 operating days. The operations were planned and executed by a multi-disciplined team operating under an Integrated engineering services contract. The team consisted of operator, lead contractor, and sub-contractor personnel. The team approach contributed significantly to the success of the project

Abstract. Syncrude Canada Ltd. and Criterion Catalyst Canada Ltd. have formed a strategic business relationship to handle hydrotreating and hydroprocessing catalyst related activities. This ‘cradle to grave’ arrangement covers all aspects from catalyst development through to recycling of spent catalyst. This comprehensive management strategy has benefits for both the user and the supplier. Syncrude's benefits relate to improved catalyst performance, streamlined business practices and other eficiencies that reduce costs, reduced exposure to environmental issues, and improved internal focus on its core business of producing Syncrude Sweet Blend (SSB) Crude Oil. Criterion Catalyst Canada (and its affiliates) benefits relate to efficiencies obtained in shared long-range planning efforts that permit optimal raw materials purchasing and manufacturing plant scheduling. Further benefits are obtained in R&D efforts through the synergy of idea exchange among the Alliance researchers. This relationship has been in place since 1994. The effort required by both parties to initiate and implement this ‘cradle to grave’ arrangement has been significant. The approach is not the ‘traditional’ way and is not always consistent with the work preferences of the personnel involved. Given that, the progress so far has been gratifying. Both parties have already benefited from the improved business interface. The tangible benefits to date relate to more cost effective ways of working together. Moreover, a plan is being followed that is using Syncrude expertise with oilsands based streams and operation, and Criterion's expertise in catalyst development and manufacturing to develop more effective catalysts for the Syncrude operation. This paper will provide an insight into the incentives, successes to date and learning associated with implementing this type of relationship between catalyst user and supplier. INTRODUCTION The Athabasca oil sands deposit situated in the northeast portion of Alberta, Canada covers an area of over 42000 km2 and contains an estimated 200 billion cubic metres of bitumen in place with potential recoverable crude reserves of more than 50 billion cubic metres. Syncrude Canada Ltd. (a joint venture owned by Alberta Energy Company Limited, AEC Oil Sands Limited Partnership, Athabasca Oil Sands Investments Inc., Canadian Occidental Petroleum Ltd., Canadian Oil Sands

I would like to thank you, Mr. President, for the invitation which was extended to me to address this esteemed forum, the World Petroleum Congress. Being here, in Norway, adds a greater significance since the impact of Norway's leaders on the new era of peace is beyond description. The recent accord with the Palestinians would have taken much longer to conclude without the intervention of the Norwegian Leadership, and, for this, we are eternally grateful. The effect of this agreement is obvious to all and just as the world is now in a new ball-game altogether in the macro, so is the Middle East in the Micro. Thus it is a double privilege for me to be here today. Our region, is now facing a new era of hope, an era of peace, productivity and prosperity. In this new era, the tasks which will confront the citizens of the Middle East, are those of cooperation for the purpose of regional development. Since the dawn of history, the Middle East has excelled as a source of commercial goods with the Land of Israel acting as a bridge. In Genesis Chapter 37 verse 25; 'and they sat down to eat bread; and they lifted up their eyes and looked-and behold; a company of Ishmaelites came from Gil'ad with their camels bearing spicery, balm and myrrh, going to carry it down to Egypt'. In our Talmud, written 2000 years ago, this verse is analysed as referring to the transfer of bitumen and oil which the Ishmaelites normally carried. Israel has always been the geographical bridge between the Greater Middle East and the Mediterranean Basin and now, it has the prospect of becoming a real and practical Bridge of Peace. We in the Middle East are now exposed to the influence of the post industrial era, in which changes are swift and may also have a profound influence on the future. We have to recognize that the future facing our region is a direct outcome of whether we can indeed plan correctly the requirements and needs of our future societies, each on its own, and all of them together, as a common socio-economic entity of mutual interests. We are also facing the challenge of restoring the historical bridge between the states and nations of the Middle East and between the Middle East and Europe. The Trans Arabian oil Pipeline, the Iraqi Kirkuk-Haifa oil Pipeline and other pipe-lines have existed since the 40s but do not operate today-not necessarily because of Israel. The Arab Gulf region produces about 17000000 barrels of oil per day, of which about 3 000 O00 are destined for Western Europe and 2 O00 000 to North America. Some of this oil, destined for Europe; and part of the additional oil to be provided in the future in order to satisfy the future demand of the European countries, could be supplied via this renewed bri