PSA a risk management tool in light of modern economic theories

  • Phung Mai Huong
Keywords: PSA, petroleum exploration and production, risk, sharecropping, farmer, principal-agent

Abstract

This article reviews, some modern economic theories to justify the conducts through which risks, rewards and incentives are harmonised, allowing petroleum contracts to become acceptable to involving parties. The author wishes to contribute more understanding on economic implications behind petroleum contracts. Therein, PSA is analysed in light of Pareto optimal, sharecropping and principal - agent theories to highlight PSA’s superior features compared to other forms of contracts from risk management perspective. Vietnam’s petroleum contract system is also reflected in this spectrum.

References

K.Bindemann. Production - sharing agreements: An economic analysis. Oxford Institute for Energy Studies. 1999.

A.Braverman, J.E.Stiglitz. Sharecropping and the interlinking of Agrarian Markets. The American Economic Review. 1982; 72(4): p. 695 - 715.

J.E.Stiglitz. Sharecropping. In “The New Palgrave: Economic Development”. London: Macmillan. 1989.

N.Singh. Theories of sharecropping. In “The Economic Theory of Agrarian Institutions”. Oxford: Clarendon Press. 1991.

O. Hart, B.Holmstrom. Contract theory. The Royal Swedish Academy of Sciences. Stockholm. 2016.

Trần Châu Giang. Phân tích rủi ro trong đánh giá hệ thống dầu khí. Tạp chí Dầu khí. 2013; 7: trang 23 - 29.

Quintino et al. Managing price risk for an oil and gas company. ICORES Conference Paper. Lisbon. 2014.

PVEP. PVEP Legal Times. Số Quý II/2013, Quý IV/2013 và Quý IV/2015.

J.E.Stiglitz. What is the role of the state? In “Escaping the Resource Curse”. Columbia University Press. 2007.

V.Marcel. The cost of an emerging national oil company. Chatham House, Royal Institute of International Affairs, London. Research paper. 2016.

Paul Stevens, Jaakko Kooroshy, Glada Lahn, Bernice Lee. Conflict and coexistence in the extractive industries. Chatham House, Royal Institute of International Affairs, London. 2013.

Tập đoàn Dầu khí Việt Nam. Lịch sử ngành Dầu khí Việt Nam (đến năm 2010). Nhà xuất bản Chính trị Quốc gia. 2011.

Mối quan hệ chủ đất - người nông dân (K.Bindemann, 1999)
Published
2019-11-15
How to Cite
Phung Mai Huong. (2019). PSA a risk management tool in light of modern economic theories. Petrovietnam Journal, 11, 48-59. https://doi.org/10.25073/petrovietnam journal.v11i0.17
Section
Articles