Politics of Fiscal Regimes and Economic Instruments in Petroleum Industry

The paper has extensively discussed fiscal regimes and their typologies, such as concession and contractual. It also discusses the choice of petroleum system on the title of petroleum resources with the state, transfer of ownership of petroleum resources, sharing of cost and profit oil, timing of the revenues, changes on revenues also changes profitability, annual work programme & budget and risks responsibilities. While the paper also pinpoints the economic instruments and typologies such as market creation, property rights, charge systems, liability systems, financial systems, and bonds systems, it also evaluates key frameworks/protocols/conventions such as United Nations Frameworks Conventions on Climate Change (UNFCCC), Kyoto Protocol and United Nations Conferences on Sustainable Development (UNCSD). Moreover, the paper analyses the fiscal regimes and economic instruments for the twin-gain of tax revenue and environmental protection. The paper deployed a case study of South Sudan and Uganda, process tracing, and empirical literature review as a methodology for this study. Although the paper concludes with contractual typology, particularly production sharing agreement/contract (PSA/PSC) as the best fiscal regime for South Sudan as well as Uganda, it recommends future research to thrust out the weaknesses of the PSA/PSC model and economic instruments in the petroleum extraction business as well as the politics surrounding it.