Introduction

In this article the authors try to provide a more complete understanding of the issues facing an oil company confronted with the risk of nationalization. First, we review the common financial issues that oil companies must consider when trying to make decisions related to how to react to a nationalization. Second, we review the common operational issues that companies consider when dealing with a possible nationalization. Finally, we discuss the risk management issues that must be evaluated by companies facing these types of decisions. As a prelude to our discussion, we ...