The Techniques of distribute sources of financing long-term investments between the state and oil-producing companies: the experience of Russia and Iraq
It should be noted that in most countries of the modern world the subsoil belongs to the people (government, state, sovereign) - one of the few, although striking exceptions, is the United States, where some of the subsoil is privatized. The participation of oil producing corporations in the market is usually carried out based on a license for the development of mineral resources, or on the basis of production sharing agreements (PSAs).
The difference between the models of such participation is that in the first case, corporations pay fiscal or fixed cash payments for the use of subsoil resources, in the second, they transfer part of the extracted oil to state ownership .
In the Russian Federation, both main mechanisms for the distribution of capital and ownership of oil in the oil and gas market are applied. A similar approach is characteristic of many Western states, although the following global trend is taking place: in countries, even the most developed, democratic ones, whose socio-economic development largely depends on oil and gas revenues, states seek either to monopolize oil and gas production, or to maximize state participation and control in this area, combining such a task with ensuring the highest possible revenue differential rent at the expense of the state.