The Role of International Financial Institutions in Oil & Gas Development in the ACP Countries

Abstract

One of the most important factors associated with the search for hydrocarbons in the oil-importing developing countries has been the emerging role of international financial institutions. Earlier in this work, the problems encountered by the OIDCS in establishing and developing their resources were examined. A major element in the lack of resource development is the difficulty in attracting foreign private investment. With many different plays available to them, the oil companies have the ultimate say in deciding where the exploration and development dollars will be spent. Historically, those areas already established as oil producers have attracted the lion’s share (typically 80% in the case of the ACP) of exploration investment.