Analysis of the evolving relationship between NOCs and IOCs : the Venezuelan case

Abstract

Close to ninety percent of the world's oil reserves are owned by governments and partially privatized National Oil Companies (NOCs), and any investment by the International Oil Companies (IOCs) is bound to involve a close interaction between them. Nowadays, with higher demand for oil, particularly in the United States and China, international oil investment has grown progressively because of the need to balance supply and demand. Therefore, it appears reasonable to expect more balanced agreements in which the contractual conditions are fair to all sides, allowing an increase in petroleum exploration activity. The objective of this thesis is to understand and analyze the evolving relationships between the International Oil Companies and the National Oil companies with a special focus on The Bolivarian Republic of Venezuela and its National Oil Company, Petróleos de Venezuela, S.A. (PDVSA).