Sovereignty, State Participation and the Need to Restructure the Existing Petroleum Concession Regime

Abstract

Serious discontent amongst oil exporting countries with the existing regime of petroleum concessions, particularly in regard to tax rates and levels of posted prices, has resulted in confrontations with concession-holding countries, and much reassessment of the situation. Iraqi lawyer and diplomat, Dr. Zakariya calls on his experience with the Organization of Petroleum Exporting Countries (O.P.E.C.) to discuss some problems inherent in the scheme as it now stands. He looks especially to the issue of state participation and discusses several alter natives such as curtailment of duration or the exercise of the legal right of nationalization open to those countries whose commitment to the existing system will not expire for\ many years. Dr. Zakariya considers the aims of such state participation, as well as the implications and legality of it, concluding in the hope that, with continued united efforts on the part of exporting countries, an amicable level of state participation will be soon realized.