IDEAS home Printed from https://ideas.repec.org/a/bla/opecrv/v39y2015i3p266-284.html
   My bibliography  Save this article

Damage evaluation in upstream oil contracts using optimal control theory

Author

Listed:
  • Mohammad N. Zangeneh
  • Fazel M. Farimani
  • Ali T. Fard

Abstract

The focus of international investment arbitration is mainly to protect the investor. A critically ignored situation in legal analysis is where under an international upstream petroleum contract, the international oil company (IOC) has breached its obligation to efficiently develop an oil field in the hosting country (HC). Although in the economic literature, a few studies have been conducted to do damage evaluation; their methods do not consider the dynamic nature of the oil field development. In this paper, it is assumed that a claim has been filed by the HC against the IOC in an arbitration tribunal to claim the damages caused to an oil field. In order to evaluate the damages, an innovative economic model based on a dynamic optimisation method is being initiated. It could be helpful for the tribunals to grasp an idea as to how the issue of evaluation of the damages will look like when they encounter the claims made by the HC in upstream oil contracts.

Suggested Citation

  • Mohammad N. Zangeneh & Fazel M. Farimani & Ali T. Fard, 2015. "Damage evaluation in upstream oil contracts using optimal control theory," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 39(3), pages 266-284, September.
    • Handle: RePEc:bla:opecrv:v:39:y:2015:i:3:p:266-284
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/opec.12045
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:opecrv:v:39:y:2015:i:3:p:266-284. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/%28ISSN%291753-0237 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.