A bunch of these countries ran into debt sold

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Unformatted text preview: owned by government Saudi Aramco, Abu Dhabi, Petronas, Statoil, Petrobras ! well- run like companies, have enough capital to make the investments they need Run oil ministry as if it’s a ministry Oil revenue goes back to government, how they’re spent is government decision Iran, Mexico, Nigeria, Venezuela – run like ministries, not well capitalized. Try to start running like a company, but its hard because of demands of the public, and don’t have to have a state within- a- state (e.g. small group of really rich people running the oil company that can boss state around) Outside sources of capital: Privatize some % of non- government shareholders Loan markets, bonds Drill in other countries? Oil- for- loan agreements Kazakhstan vs. Azerbaijan K: new type of oil, don’t know how to extract it (sulfur problems) – wanted one BIG contract with someone who knows how to extract it. Open to anyone, because Russia was just gonna be a minor player. Contracts with Chevron, the state retains 51% of the oil. A: wants lots of small companies, from anywhere besides Russia. Strategy so that they have lots of markets, protect themselves from Russia. When oil co...
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