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Political Risks of Transnational Petroleum Investment: the Mitigating Role of National and International Insurance Programmes
Author(s) -
ZAKARIYA HASAN S.
Publication year - 1987
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/j.1477-8947.1987.tb00303.x
Subject(s) - corporation , political risk , politics , government (linguistics) , investment (military) , business , petroleum , agency (philosophy) , economic policy , foreign direct investment , finance , private sector , international trade , economic growth , economics , political science , paleontology , linguistics , philosophy , macroeconomics , epistemology , law , biology
As in the case of all foreign investments in general, political risk has been one of the more serious inhibiting factors in petroleum operations by transnational companies. In practice, however, these risks can be significantly mitigated or eliminated altogether, through the insurance programmes which are normally available to all foreign investors. This article reviews the petroleum activities of some of such programmes, notably those sponsored by the US Federal Government under the Overseas Private Investment Corporation (OPIC) and, more recently, by the World Bank under its newly created Multilateral Investment Corporation Agency (MIGA).