Rig Types

To know more about the different breeds of rigs, the following site provides some comprehensive information:

http://hydrocarbonkid.blogspot.com/2008/04/offshore-drilling-rigs.html

Oil Rigs in Rio (CLICK ON PICTURE TO ENLARGE!)

Brazil Oil: New legislation update

Brazil’s President Luiz Inacio Lula da Silva has proposed new legislation aimed at governing the development of his country’s potentially enormous reserves of oil in the offshore presalt layer, about 270 km off Brazil. As the President put it: “The subsalt oil fields are a gift from God—wealth which, if properly managed, can drive major transformations in Brazil, improving living conditions for our people.” Lula also reiterated that Brazil does not want to be a “mere exporter of crude oil” and that the plan also aims to establish a powerful petrochemical industry to refine the oil into derivatives in order to export value-added products like gasoline. The development model, which must be ratified by Brazil’s Congress, includes: a new production-sharing system for contracts; a new public company for presalt contract agreement and administration; and a new social fund for investment in education and mitigating poverty in Brazil.

The new development model involves Brazil’s move from a concession model to a production-sharing system for the award of new contracts. Brazil’s Minister of Mines and Energy Edison Lobao said the proposed production-sharing system reflects a change in Brazil’s standing from an oil importer to a self-sufficient global energy producer.

The government's new model also includes the creation of a public company responsible for controlling and monitoring the cost of E&P of presalt and the administration of sharing contracts. This company will represent the country in the consortia and operating committees to be created for directly managing different sharing contracts and monitoring all activities in E&P. The presalt development model will establish a social fund that will set up a means to direct revenues from presalt exploration toward investment in poverty reduction, in education and in science and technology. The new social fund will take the form of a public savings account that receives income from various sources such as royalties, signature, bonuses, and commercial revenues from petroleum and gas, originated in production sharing, and resources from activities such as mining.

Incorpolis in Rio!

After writing numerous articles on Brazil oil from my squeaky chair in Oxford, Incorpolis is now in a position to write about the commodity, the market and industry in general. Expect pictures of oil rigs, pipes and ships soon!

Piracy and gobal redistribution of wealth

Piracy is undoubtedly a crime. That cannot be disputed. However, as Marcus Aurelius argued, "hunger is the mother of all crimes". Thus I ask: is piracy merely a manifestation of the unequal distribution of wealth in the world? Arguably, some pirates enjoy what they do: the thrill, the drama, the weapons. But if we look closer, we can see how it is simply mankind's struggle for economic equality. It is essentially an economic crime. And one cannot fight such crimes with use of force - what is needed is long-term regional economic reform.








INTERNATIONAL TRADE < < < <<<<<<<<<<<<<<

Piracy at Sea IV

As Incorpolis argued in "Piracy at Sea III", the solution to the Somali piracy problem entails reforming the political and social fabric of the country. Indeed, as Rear Adm Peter Hudson put it "piracy cannot be solved at sea...bringing stability in Somalia is crucial".

For more on this see:

http://news.bbc.co.uk/1/hi/world/africa/8115662.stm

On the LPC electives: You don't have to be fair

The desire to become known publicly,

By re-registering, listing and trading,

Intra-group taxes and VAT relief,

Private acquisitions, takeovers,

Shareholder’s grief.

Disclosing facts that are unknown,

May seem to some burdensome,

You have to be fair.

You have to be fair.

You have to be fair is set in stone.

Moving, buying, profiting, growing,

Taxing, ruling the unruly, encoding,

M.B.O’s and M.B.I’s

Private equity, change of control, sigh.

You have to be fair.

You have to be fair.

Planning early avoids later losses,

Unhappy employees but happy bosses,

Merging entities that once competed

For the same resources that are now depleted.

Tricky stocks and tricking prices,

Warranties, indemnities,

But the seller entices,

The buyer, poor buyer, says “no more!”

To the glorified English legal principle of

Caveat emptor.

That is,

Let the buyer beware.

You don’t have to be fair.

Oh seller!

Watch him drown,

Oh students!

In their robes and gowns,

Teachers! Teach them,

That they don’t have to be fair.