Oil-rich states drilling deeper in exploration partnerships | The National

Oil-rich states drilling deeper in exploration partnerships | The National:

"The main three reasons why international oil companies (IOCs) are interested in partnerships with oil-rich countries are reserves, reserves and reserves.

This is no secret or wonder, as IOCs control less than 10 per cent of the world’s reserves and scour the globe in the hopes of booking reserves to push up their reserves replacement ratio (RRR). According to a recent report produced jointly by Oil Change International, Greenpeace and Platform, at least four of the largest six IOCs are dependent on the expensive and hard-to-process tar sands reserves to boost RRR rates. Tar sands account for up to 71 per cent of their total liquids additions.

This is why Mexico’s recent announcement to change the constitution to allow outside participation in the oil industry and the possibility to book reserves has been welcomed with joy by IOCs."

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