Abstract
The sustainability of the upstream oil and gas industry has provided the basis for an appraisal of the current contracts agreed upon within the industry. Whether it is the financing or the development stages of the contract, it is crucial to appreciate the philosophies and theories behind such contracts. For too long, the industry has deployed clever and skilful contractual methods to displace risk and mitigate it accordingly, often towards the party with deeper pockets and better bargaining position. Unfortunately, the environment and the local inhabitants usually end up with the highest price to pay when such upstream oil and gas contracts prove disasters. This research is categorised as multi-disciplinary, having theoretical and practical elements applicable in complex business environments, particularly the Oil and Gas industry, with complexities, uncertainties and several contingent factors. From the early discoveries of Oil and Gas fields, the industry has been characterised with two major concepts, first, the risk associated with this highly flammable, dangerous and pollutant product. Second, the finance required to extract and operate the upstream industry. The aim is to critically appraise the state of the conventional finance in the upstream oil and gas industry and a comparative analysis of it with Islamic finance.Islamic finance may well provide the solutions that have been long sought after. From a Muslim’s perspective, the religion of Islam ought to provide the necessary tools and techniques for sustainable and commercial activity. However, within the oil and gas industry, the projects extend beyond Muslim concerns and include Non-Muslim financiers, lawyers and judges. This has led for an already uncertain, high risk and complex activity of the upstream oil and gas to be even more complicated. Mixed projects with parties from all over the globe have attempted to rationalise Islamic rules and, through Islamic compliance, sought to tap into the high level of oil and gas reserves located within Islamic jurisdictions. This research aimed to examine the critical role of IPF in O&G projects, specifically Islamic finance. By focusing on Islamic financing, the study contributes towards the knowledge based on previous studies and identifies the legal and contractual risks associated with complex and uncertain O&G projects.
| Date of Award | 2021 |
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| Original language | English |
| Awarding Institution |
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| Supervisor | Munir Maniruzzaman (Supervisor) & Kieran Walsh (Supervisor) |