Host Government Agreement


In view of the new emerging mechanisms such as wind income tax, mandatory service agreements and joint venture operations, the increased use of price-related tax concepts, as opposed to R-factor formulas, and the limitations on reimbursement by Cost Oil and depreciation, OGEL considered that it was time to carry out an international investigation into different tax regimes, including efforts to ensure that current forces are used. 2000.20% of international oil companies (IOCs). national oil companies (“NOCs”) and host governments. This edition has strived to find experts who not only design from an international perspective, but who I hope will also find these elements in different host governments, who will experience changes in their E&P plans and in the contractual strategies of the host government to share their opinion with us from the perspective of a national practitioner. In the meantime, Mexico is implementing a new model services contract to boost additional investment in the E&P sector. Years ago, Mexico recognized the limits of attracting foreign investment within its existing legal system and introduced several amendments to the PEMEX Law and related rules in 2008. Finally, Mexico has developed a new model agreement on services for the implementation of the 2008 reforms, which is expected to be approved at the time of publication of this special issue. Mexico hopes to generate the kind of investment made in Iraq for its model service contract. This optimism is mitigated by the fact that the risk profile in Mexico is very different from that in Iraq and that the conditions set out in the model agreement announced by PEMEX are likely to determine the success or failure of the program to create the necessary upstream investments in Mexico. The service contract model, with inherent flaws, with IoCs booking difficulties among most stock exchange rules, is increasingly popular in Latin America and has been introduced in several countries in the region. . .

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