petroleum industry

Petroleum Industry

Oil industry, petroleum industry, including exploration, extraction, refining, transport, (usually by oil tankers and pipelines), and marketing of oil products. Higher value products in the industry fuel oil, and gasoline.

Oil is also the raw material interference in a lot of chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The oil industry is usually divided into three main sections: upstream, middle and downstream.

Usually it includes Central industries with downstream industries.

Oil industry contracts

Can oil projects in the world decades formats are divided into the following types:

1- Concession:

It decades characterized by giving the company the right to research and exploration in a piece of land donated by the state of the Company is handled conduct all business in exploration and drilling, and if oil found in commercial quantities transformed the company into development down "to the production and export stage, and here's all you need on the state is to give facilities give ground to facilitate the company's business both in terms of bringing the equipment and labor to their own in order to complete the work and when access to the production and export stage is to give part of the profits to the owners of the land the state, these contracts did not give the right of the state owners of the land the right of appointment and the right of management and supervision when was the conclusion of this contracts at the beginning of the expansion of the research and exploration and production in the beginning of the last century because of that most governments were subject to the nationalities of the countries explored by companies searching for oil, either at the present time is a better and equitable contract formulas give the state part of the management, supervision and recruitment of national nature of their employment and training for employment by The company invested, for example, concession contracts in Libya, Saudi Arabia.

2- Risk Service Contract:

     It are contracts handled by the state from A to Z and are hiring a company to serve as the contractor for the implementation of research and exploration for the benefit of the state as it was Iraq previously and these contracts do not bring the required investment and Aajelb companies to take the risk in implementation with failure to ensure their use of labor.

3- Sharing Production Agreement:

    Is the monopoly contracts that did not specify the conditions under which profit from the state to participate with the company invested the state and get under those contracts a little economic benefit without the conditions that must be placed in favor of the state, which contracts put the future of the donor State of the contract depends strongly on the market situation when selling that did not is determined rates of participation and revenue are divided according to specific levels with the development of the terms of the right to a proportion of employment in the company and the right training to the cadres of the state undertaken by the company in favor of the State participation and an example of these contracts to participate in the Republic of Angola, the Angolan oil company and multinational companies such as Italian duty Company Contracts with the British oil company

4- Buyback Contracts:

    Are investment contracts but are retrieving capital firms invested with a margin simple profit after which the State is the owner of the area entirely, for example, Iran, which until now suffer from lack advent of invested companies and have every time to change some of the conditions for the benefit of companies that wish, and be put up in an international tender to search and development, although this did not achieve the required and the lack of companies that proceeded on their investment.