9. Key policy considerations
Depending on the size of the proved reserves and hence potential of competition and cash generation, a key consideration for policy makers within the host state is the kind of partnership envisaged between the state and foreign investors.
The horizon of resource exploitation – which also depends on the level of knowledge of the reserves – is another local point of contemplation for the policy maker as there may be a need to prioritise profit maximisation, oil recovery, and encouragement of the investments. From the early stages of discovery, tools of resource management therefore need to be crafted. This means the establishment and maintenance of a petroleum policy that ensures a transparent and informative legislative framework and an award system with effective and efficient public consultation. As such, copies of all data should be submitted to the host state to enable the policy maker to have all the geological knowledge and an upper hand in negotiations with the foreign investor.