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PRODUCTION SHARING AGREEMENTS-MORTGAGING IRAQ'S OIL WEALTH
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Journal Article
PRODUCTION SHARING AGREEMENTS-MORTGAGING IRAQ'S OIL WEALTH
2006
Overview
Muttitt discusses the implications of one key plank of Iraq's developing oil policy, which is the proposal that foreign companies should be given access to oil reserves through the mechanism of production sharing agreements. He notes that in such agreements, while the state theoretically has ultimate control over the oil, in practice, however, the actions of the state are severely constrained by the stipulations in the contract. Considering this, he opines that Iraq would be well advised to maintain flexibility in how it structures its oil industry and to avoid long-term, irreversible decisions.
