Iraq's Service Contracts: Issues that IOCs may face when a Joint Operating Company (JOC) is Formed and They Takeover the Conduct of Petroleum Operations Under the Iraqi Development and Production Service Contract (DPSC)
Article from: OGEL 3 (2017), in Middle East, Buy Back Contracts
Abstract
Although in economic terms of the DPSC, namely the contractor's entitlement to a remuneration fee, won't change when the JOC is established, the shifting operatorship from the contractor's operator to the JOC negatively impacts petroleum operations from several perspectives. One such negative impact is that the IOCs business oriented petroleum operation is substantially controlled by the non-commercial entity of the NOCs as well as conflicts of interests arising from within the Regional Oil Company (ROC), due to them being a supervisor and a player at once. Non-profit JOCs are ...