Characterising Iraq’s Petroleum Fiscal Regime following the toppling of Saddam Hussein’s Regime: Baghdad Service Contracts and Kurdistan Production Sharing Contracts.
Lorian Yacoub, Doctoral Researcher, Management School The University of Sheffield.
U K
British Academy of Management
BAM 2013
[1]
This paper seeks to characterise Iraq’s petroleum fiscal regime following the 2003 invasion.Two types of contracts were signed with International oil companies (IOC’s) – Technical Service Contract (TSC) with the central government in Baghdad and Production Sharing contract (PSC) with Kurdistan regional government (KRG). This paper is discussing and analysing these two types of contracts to find out, how successful the government is in capturing rent and which of these contracts is more successful for the government. Discounted cash flows are used for west Qurna field, where a TSC is signed by the central government, and comparing it to PSCs signed by KRG. The results show that in both the federal TSC and the KRG PSC, the share of the cash flow going to the state is very large, similarly the Internal Rate of return for the IOC’s, also the Iraqi TSC’s and Kurdistan PSC’s share the same basic
characteristics.